The Government deferred implementation of TDS and TCS on e-commerce players – Amazon and Flipkart that required them to deduct TDS on payments made by their vendors from July 1 onwards.
“This step has been taken to provide more time for persons liable to deduct tax at source/e-commerce companies and their suppliers to prepare for the historic tax reform,” said the Finance Ministry.
Moreover, the small businesses who sell through Amazon and Flipkart do not have to register immediately which is a relief since most of these small businesses are not ready for GST implementation. These businesses had raised this issue with the Centre and are happy with the development.
“This ensures business continuity for the marketplace but most importantly benefits our sellers since they don’t have to deal with pressures of cash flow at a time when they are transitioning into a new tax regime,” said an Amazon spokesperson.