E-commerce term may be misinterpreted in GST: ASSOCHAM

New Delhi, Apr 16: The scope of the e-commerce definition as given in the Goods and Services dispensation has been left so wide that it could go well beyond Amazon or Flipkart marketplace platforms and may even cover the commodity exchanges, the ASSOCHAM has said, seeking a clarity from the government so as to remove uncertainty among businesses, as the GST is set for a roll out.
“The scope of the terms ‘electronic commerce’ is very wide and does not restrict itself to cover electronic marketplace service providers like Amazon, Flipkart.
It covers all businesses where the supply of goods/ services is through a digital or electronic network,” the ASSOCHAM said in communications to different concerned ministries.
It said since the term ‘e-commerce’ covers all businesses where the supply of goods / services is through a digital or electronic network, there is a possibility of “unwarranted interpretations” which may lead to Future and Commodity Exchanges being treated as an electronic commerce operator in respect of commodity derivatives which result in actual delivery of the goods.
“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 ecommerce operators and commodity exchanges.