The Commerce Ministry is set to issue ‘Digital Commerce Operation Guidelines 2021’ as a circular next month even as the Government is mulling to make trade licences mandatory for small e-commerce entities (over five lakh) who are running business on Facebook and other social media platforms in an effort to bring them under regulations while also expand the tax net as well.
Media reports claimed this while underlining that larger e-commerce entities, which are involved in selling products on digital marketplaces and those having their own websites, would have to register for value-added tax (VAT) apart from obtaining trade licences even as they went on to maintain with this move, the Government not only aims to streamline the sector but also expects to earn over Taka 200 crore in revenue (by issuing trade licences to e-commerce entities centring Facebook and other social media).
Meanwhile, e-commerce entities have, reportedly, opposed the Government’s move adding strict regulations run the risk of hindering the growth of this booming sector even as they expressed apprehensions that many small-scale e-commerce entrepreneurs would rather shut down their businesses to avoid the hassle of obtaining trade licences.
