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Ecomm Industry Warns of Crisis If GST Not Passed

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Goods and Services Tax (GST) can bring a huge relief for ecommerce companies in the country, Internet and Mobile Association of India (IAMAI) has said in a representation to the government.
IAMAI said that various states levy different taxes on sellers on ecommerce marketplaces ­ many of whom are micro, small and medium businesses scattered across India ­ which are difficult to comply with and the industry is seeking a common rate and some clarity on taxation in order to boom.
Subho Ray , president of IAMAI, said that while the large ecommerce companies in the country may have the wherewithal to deal with such issues, the smaller players who are still trying to find their feet in the market do not. “Right now we have 5-6 states troubling the industry , if the GST doesn't get passed in Parliament, we will have issues with all 2829 states,“ he said.
Ray said that only two to three large ecommerce players may be able to survive in such a situation.
Vijay Shekhar Sharma, CEO of Alibaba-backed Paytm, agreed and said that lack of clarity and difficulty in compliance has led to companies such as Paytm stopping delivery in crucial markets such as Noida and Ghaziabad. “We have forced ourselves to stop delivery in UP, at the end everybody loses,“ he said.
The Economic Times, New Delhi, 25th February 2016

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