On July 11, the Goods and Services Tax (GST) council will meet. At this time, it is unclear whether the buyer or the e-commerce platform, from which the product was purchased using the open network for digital commerce (ONDC) platform, is responsible for withholding tax collected at source (TCS).
The GST council, which is presided over by Finance Minister Nirmala Sitharaman, is scheduled to convene and will likely talk about the ONDC.
A customer puts an order with an e-commerce platform under ONDC, and that platform then purchases the consignment from another e-commerce platform.
Due to the involvement of many agencies, this has caused uncertainty among the authorities on which of these entities should be taxed.
The GST council is anticipated to make a decision on this complex subject at its meeting on July 11.
The council may also address the problem of excessive input tax credits (ITC), which are made by commercial enterprises.
The council will probably create a new regulation that will require firms to answer questions about the excess ITC they have claimed. According to insiders, they could even be requested to deposit the extra money with the government.