NEW DELHI: The Goods and Services Tax (GST) Council is scheduled to convene on July 11, where one of the key points of discussion will be the determination of tax collection at source (TCS) responsibility, whether it should lie with the buyer or the e-commerce platform, under the open network for digital commerce (ONDC) platform.
Headed by Finance Minister Nirmala Sitharaman, the GST Council is anticipated to engage in a detailed examination of the ONDC during the meeting.
Under the ONDC framework, buyers place orders through e-commerce platforms that, in turn, procure the goods from other e-commerce platforms.
This multi-agency involvement has caused confusion among authorities regarding which entities should be subjected to taxation.
The forthcoming meeting on July 11 is expected to provide clarity on this perplexing issue and arrive at a conclusive decision.
Additionally, the Council is likely to address the matter of excess input tax credit (ITC) claimed by businesses.
A new regulation is anticipated, which will entail an inquiry into the excess ITC claimed by entities. It is possible that they may be required to remit the surplus amount to the government, as per insider sources.
New GST rules on the anvil, Businesses may have to explain ITC claims
GST on Mobile Phones Reduced in July 2023, Details here