The government must clearly outline the scope of 'e-commerce' under the GST, as the current definition can include even commodity derivatives exchanges where there is no actual delivery of goods, an industry body has said.
The term 'e-commerce' may get misinterpreted in the Goods and Services Tax (GST) law, industry chamber Assocham said. "E-commerce definition, as given in the Goods and Services Tax (GST) dispensation, has been left so wide that it could go well beyond Amazon or Flipkart marketplace platforms and may even cover the commodity exchanges," it said.
The chamber has sought clarity from government to remove uncertainty among businesses as the law is set for a rollout either in July or September. "The scope of the term 'electronic commerce' is very wide and does not restrict itself to cover electronic marketplace service providers like Amazon, Flipkart.