IGI Logo

As an integral part of the digital commerce landscape, ONDC welcomes the recent guidelines issued by the CBDT under section 194-O of the Income-tax Act, 1961. These guidelines provide much-needed clarity for participants in the ONDC ecosystem, ensuring that tax implications are well-understood and adhered to.

We believe that by providing clarity on the application of Sec 194-O to network models of digital trade where multiple e-commerce entities are involved, these guidelines will contribute to the ease of doing business on the ONDC Network and strengthen the compliance framework for digital transactions. The explicit guidelines on tax deduction responsibilities, what fees are to be included in the gross amount, and the treatment of GST and other taxes are particularly valuable for participants in navigating the evolving digital commerce landscape.

ONDC remains committed to fostering a transparent and compliant digital commerce environment, and we encourage all our participants to familiarize themselves with these guidelines. We believe that a clear understanding of tax implications will contribute to the continued growth and success of digital commerce in India.

Above views are of the author and not of the website kindly read disclaimer