The proposed Constitution Amendment Bill on Goods and Services Tax (GST), introduced by Finance Minister in Lok Sabha last month, is expected to smoothen business process for ecommerce companies by resolving several supply chain issues that plague the sector, according to experts.
GST is a single tax regime, applicable across states, on the sale, manufacture and consumption of goods and services. It will simplify and harmonise the indirect tax regime in the country, and is expected to foster a common and seamless Indian market.
Taxes like central excise duty, additional excise duties, service tax, additional customs duty (CVD) and special additional duty of customs (SAD), etc will be subsumed in GST. At the state level, taxes like VAT/sales tax, central sales tax, entertainment tax, octroi and entry tax, purchase tax and luxury tax, etc. would be subsumed in GST.
All goods and services, except alcoholic liquor for human consumption, will be brought under the purview of GST, which means all apparel and fashion products sold through retail and ecommerce would fall under the purview of GST, which will have lesser Paprt work.