Sellers On Flipkart, MakeMyTrip, Amazon To Benefit From Lower TCS

SUPPLIERS, who sell their goods and services through platforms like Amazon, Flipkart, MakeMyTrip and Yatra, will benefit from the cut in TCS (tax collected at source) rate from 1% to 0.5% in terms of having more working capital to operate their businesses.

- MONIKA YADAV

However, only those businesses which are not very profitable or are in their initial phase will get the advantage, say experts.

The announcement to cut TCS was made in the 53rd GST Council meeting last Saturday.

"Purpose behind levying TCS is to track flow of money to raise tax base. This is levied at early-stage transaction on sale of goods, services, or certain high-value transactions and can be claimed as a credit by taxpayers. Loss-making businesses and start-ups will get relief of having more cash in hand," said Asish Philip, Partner at Lakshmikumaran & Sridharan.