Online Merchants Look Forward to Cash-Flow Gains with GST Cut: Report 

E-commerce platforms, brands, and restaurants on e-commerce platforms anticipate cash flow improvements after the GST council’s proposal to reduce the tax collected at source (TCS), as per a report by the Economic Times. On Saturday, the council recommended that the TCS collected by electronic commerce operators, encompassing e-commerce, quick commerce, and food delivery platforms, be decreased from 1 per cent to 0.5 per cent. Read: States Should Get 60 Per Cent Share Of GST, Says Kerala FM During 53rd GST Council MeetingThis move was taken by the supplier to ease the financial burden on the suppliers who are making supplies through Electronic Commerce Operators (ECOs). As per a statement issued by the Ministry of Finance, “The GST Council has recommended reducing the TCS rate from the present 1 per cent (0.5 per cent CGST + 0.5 per cent SGST/UTGST, or 1 per cent IGST) to 0.5 per cent (0.25 per cent CGST + 0.25 per cent SGST/UTGST, or 0.5 per cent IGST) to ease the financial burden on the suppliers making supplies through such ECOs.” “The change won’t be so significant as to impact profitability, but it will meaningfully help with freeing up cash flow that we can reinvest into the business,” as per a seller who spoke to the Economic Times. Several sellers reportedly highlighted that the move would give sellers more flexibility. 

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