The government is proposing to defer the implementation of tax collection at source (TCS) for three months, a move that will give a breather to Amazon, Flipkart and other e-commerce service providers, reported The Economic Times on Monday.

Online platforms have to collect the tax from those selling goods on their sites while making payments for goods sold. The tax was to come into effect from July 1.

Ecommerce platforms, which have multiple sellers with small turnovers, have been wary of the provision, fearing an increase in the compliance burden, the report said.

Their lobbying had already led to the tax being deferred by a year, just days before the goods and services tax (GST) rollout on July 1 last year, according to the ET story.

While the GST regime is regarded as having stabilised, it was felt the imposition of TCS could lead to a heavy burden on the GST Network.

The government is keen that systems are fully prepared to handle the added transactions before implementation, the ET reported.