Did you know India’s e-commerce market is expected to reach US$99 billion by 2024? This makes India the second-largest e-commerce market, just behind the US. As the digital market grows, so does the need for tax compliance. The GST registration process for e-commerce operators is now essential for legal and smooth business operations. The Central Board of Excise & Customs (CBEC) has set up special rules for e-commerce GST registration. This is because the sector is growing fast and has complex tax issues. If you sell online or plan to start an e-commerce business, knowing these rules is crucial for your success. Now, e-commerce business tax compliance is a must. Section 24 of the Central Goods and Services Tax Act, 2017 requires all e-commerce operators to register for GST. This includes collecting a 1% tax on each transaction, except for exempted goods and services. As an e-commerce operator, you must collect Tax Collected at Source (TCS) at a maximum rate of 1% on the ne...
Did you know only about 1% of India’s population pays income tax? The Direct Tax Code 2025 aims to increase this number to 7.5%. This new tax code will replace the Income Tax Act of 1961, bringing reforms and modernization to India’s tax system. Finance Minister Nirmala Sitharaman introduced the Direct Tax Code 2025. She aimed to simplify laws, reduce litigation, and encourage better compliance. The code has been in development for over a decade, with the first draft in 2009 and a presentation in 2010, but faced several delays. The Direct Tax Code 2025 aims to simplify and make taxation more transparent. It introduces changes like simplified residential status and unified tax rates for companies. It also reduces deductions and exemptions, and introduces TDS and TCS on most income. The new code will be implemented in April 2025 for the financial year 2025-26. It’s important to note that the Direct Tax Code 2025 is not yet implemented. To learn more about the upc...