EBay is looking at blocking Australians from foreign sellers

'E-commerce term too wide in GST, may cover commodity exchanges'

Earlier, various e-commerce firms had requested Govt.to keep them outside of GST regime.

Commodities Trading Can Be Also Placed Under Ecommerce?

According to the e-commerce marketplace, there is no foreseeable and practical way for the Australian government to enforce overseas retailers to abide by its GST law, and complying with the new law and shutting out Australian buyers would mean they would be disadvantaged, as although they can still buy from Australian eBay sellers, they would be unable to bid in a much bigger global marketplace.

Stating an example, Assocham said that under the current scope, even commodity derivatives exchanges can be clubbed with e-commerce.

"Secondly most suppliers who trade through a marketplace are well below the threshold for registering for GST".

"It covers all businesses where the supply of goods /services is through a digital or electronic network", Assocham said in a communication to concerned ministries.

The industry body maintains that commodities exchanges can not be treated as electronic commerce operator in their legal capacity as well as in common parlance.

Once tax rates on services are decided, the fitment committee will meet again after a fortnight or so to decide on tax rates on goods before a full report of the panel is put up for consideration before the GST Council in its May 18-19 meeting in Srinagar.

Revenue Secretary Hasmukh Adhia had earlier said that the Centre will make a strong case to the GST Council for not touching services that are out of tax net now, it will also pitch for keeping concessional rate for services like transport at the current level. Currently, for some financial service providers, there is tax exemption for tax earned via interests.

Talking of tax rates around the globe, most countries have a single regime, while India has opted for a four-tier tax structure of 5%, 12%, 18% and 28%, while the highest rate could go as high as 40%. For example, the case of coconut oil, which is an essential food item in South India, but a luxury product in North India.

The council is keen to meet the 1 July deadline for GST, which has missed several past deadlines owing to political differences.

Vice president and managing director of A/NZ operations Jooman Park told a senate committee examining the so-called "Amazon tax" that the government's plans were "complex, inconsistent [and] unworkable".

60 services are right now exempted from service tax, which includes: religious pilgrimage, healthcare, education, skill development, journalistic activities.

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