GST law treating commodity derivatives as e-Com players: Assocham

GST law treating commodity derivatives as e-Com players: Assocham

GST has received the President’s assent, but there are still cases of misinterpretations.

The Dollar Business Bureau 

Assocham, the industry association has found misinterpretations for e-commerce and commodity derivative exchanges under the current GST law. The association through its spokespersons said, "e-commerce definition, as given in the Goods and Services Tax (GST) dispensation, has been left so wide that it could go well beyond Amazon or Flipkart marketplace platforms and may even cover the commodity exchanges." 

It suggested that the scope of electronic-commerce is not limited to providers such as Amazon and Flipkart alone, but also to businesses whereby a supply of goods or services is rendered through a digital or an electronic medium. There is a possibility of commodity exchanges being treated as e-commerce transaction although derivative-trading does not involve any delivery of actual goods. 

Besides e-commerce, Assocham suggested that the GST is silent on cases involving interest on loans, and replication of implementation of interest-exemption for banking institutions. The association has also called for clarity in sectors such as exports, gems and jewellery, MSME sector, banking and telecom. “Eventually, the GST should become a showpiece of our reforms,” added DS Rawat, Secretary General at Assocham. 

"In our opinion such an interpretation will not be in consonance with the object and intent of special provisions for the electronic commerce business. There are distinguishing legal and operational factors between e-commerce operators and commodity exchanges," the industry body said.

The Dollar Business Bureau - Apr 17, 2017 12:00 IST