The Budget has prepared a solid foundation for the incoming GST reforms. The e-commerce industry should now gear up for an overhaul in terms of its system to keep in line with GST as the Government has made amply clear its readiness for the tectonic policy reform.
According to Rashmi Deshpande, Associate Partner on E-commerce, Khaitan & Co, the Budget has a clear agenda of honouring honest tax payers and paving the way for increased digitalisation of the economy.
“The FM has pointed out that technology is going to play a major role in implementation of Government’s clean-up agenda. Accordingly, indirect tax on devices related to digital infrastructure have been exempted to give a boost to the industry,” Deshpande said.
Nevertheless, contrary to common belief, the service tax rates along with excise rates that were pegged to increase in line with the proposed GST rates, have been kept untouched.