The onus of deducting TCS may be on ONDC sellers

GST Council meeting: The onus of deducting TCS may be on ONDC sellers The GST Council could clarify things about TCS liability in the context of the new ONDC model. It might just be the ECO's responsibility!

The Goods and Services Tax (GST) Council in its meeting likely to put out a clarification about the tax collected at source (TCS) liability of suppliers in context with the newly-introduced ONDC model.

It may clarify that TCS would be deducted by the seller app while making a payment to the supplier if there are multiple e-commerce operators (ECO) involved in a single transaction.

The Open Network for Digital Commerce (ONDC) model is intended to democratise digital commerce and move it from a platform-centric model, such as Amazon and Zomato, to an open-network model in a bid to end.

The Open Network for Digital Commerce (ONDC) is a new initiative by the Government of India to promote open and transparent digital commerce in India. ONDC is a platform-agnostic model that will allow multiple ECOs to participate in the digital commerce ecosystem.

TCS is a type of indirect tax that is collected by a party from another party at the time of a transaction. In the context of GST, TCS is collected by e-commerce operators (ECOs) from suppliers on the taxable value of goods or services sold through their platforms.

Council is likely to clarify that the onus of deducting TCS will be on the seller app in cases where there are multiple ECOs involved in a single transaction. This means that the seller app will be responsible for collecting TCS from the supplier & depositing it with government.

In my view, the clarification from the GST Council is important because it will provide clarity on the TCS liability of suppliers in the ONDC model This will help to ensure that suppliers are complying with GST laws and that the government is collecting the correct amount of tax

The ONDC model is a significant development in the Indian digital commerce landscape. It has the potential to democratize digital commerce and make it more accessible to small businesses.

The clarification from the GST Council will help to ensure that the ONDC model is successful and that it benefits all stakeholders.