1% tax at source under GST likely for online sellers

The Centre and states to charge only 0.5% each; e-commerce marketplaces to collect levy

The Centre and states are likely to each impose a 0.5 per cent tax collected at source on sellers of products on e-commerce websites such as Flipkart and Amazon under the goods and services tax (GST) regime. 

This proposal would be taken up at the two-day meeting of the GST Council, starting Thursday in Srinagar. The tax will be collected by the e-commerce marketplaces: They will deduct 1 per cent while paying the sellers.

E-commerce players had earlier opposed a provision in the GST law to impose a 2 per cent tax — 1 per cent by the Centre and