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Parliament should take necessary legislative steps to usher in goods and services tax (GST) system in the ongoing budget session, Internet and Mobile Association of India (IAMAI) has said.
IAMAI — an industry body which represents digital businesses in India — is keen that the Constitutional (amendment) Bill and other Central GST law are enacted in the Budget session itself.
A digital business that is operating on the marketplace model would be much better off under the proposed dual-GST system than the situation now, Vijay Shekhar Sharma, Founder & CEO, Paytm, said here
These e-commerce marketplaces would be able to understand the system and guide merchants in their compliance with inter-state taxation under a destination based regime.
A GST system will bring the desired clarity and predictability to how goods and services would be taxed. Right now, several States are trying to extract more revenues through arbitrary entry taxes.
Sharma also said that it was not necessary that ‘e-commerce’ or ‘marketplace’ be defined in the GST law itself so long as the legal framework provides clarity on taxation of transaction between buyer and seller and also for service providers.
“I don’t think the solution of GST is to define the marketplace”, he said.
Subho Ray, President, IAMAI, said that the benefits of a predictable tax system under the GST regime would far outweigh the increased compliance that may be required for e-commerce players.
Yashish Dahiya, Co-Founder & CEO, PolicyBazaar, said that GST would be a better tax system for digital businesses like PolicyBazaar.
According to IAMAI, the extant tax structure is heavily fragmented, with multiple indirect taxes levied by different authorities at different stages of a transaction.
The digital industry unequivocally stands for the smooth passage of GST laws and hopes that the relevant Bills will be passed in the ongoing budget session, said Dinesh Agarwal, Founder & CEO, Indiamart.
Srivats.kr@thehindu.co.in .
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