The Goods and Services Tax (GST) Board has agreed to a series of changes, including an agreement to ease compliance bottlenecks for e-commerce vendors, according to people knowledgeable.
This means that e-commerce providers will now be allowed to register under the scheme to facilitate registration and reduce their tax expenditure.
Currently, suppliers supplying through e-commerce are required to register for GST on a mandatory basis. In addition, businesses with a turnover of up to Rs 1.5 crore and engaged in e-commerce supplies would be allowed to opt for the compounding scheme, which offers a lower tax rate and easier compliance. .
Currently, companies supplying via e-commerce cannot take advantage of the concordat regime. The changes would bring parity between entities doing business in online or offline mode under the GST.
The GST Council, in its two-day meeting which began yesterday, is discussing a range of issues, including a mechanism for compensating states for lost revenue, adjustments to the tax rate of certain items and relaxed registration standards for small online providers.
Other changes to facilitate tax compliance and collection
CNBC-TV18 has also learned that the Commission has authorized changes in GSTR3B which is the monthly GST return to be filed by taxpayers.
In addition, the government-run NIC (National Computing Center) will be used as another platform to record e-invoices.
The Council has also agreed to have up to six invoice registration portals over the next six months in order to provide an adequate back-end IT infrastructure to handle the current load of electronic invoices.
The center and states are now allowed to issue a show cause notice whether or not the taxpayer is within their jurisdiction in an effort to plug leaks.
(Edited by : Abhishek Jha)
First post: STI