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Aftermath of e-Commerce Post GST

Summary: To know about the impacts of GST on e-commerce, you should spare some time and go through this blog that will help you to know everything.

The e-commerce market in India has picked up pace with the implementation of the digitalization and many of the brands have been extracting millions with the unprecedented implementation. But with the passage of the GST bill and its immediate pursuit in getting enforced into a law in India will certainly have an impact on e-Commerce business. In this blog, you will come to know about the shape of the e-commerce industry after the GST.

Impact of GST on e-Commerce

In India the e-commerce business has been estimated at 2,11,005 crore and considering its present pace, it will well hit the US$20 billion by 2020. But with the GST coming in the picture there might well be a slump in the figures. Here’s how GST will impact e-Commerce
Slump or Slow Down in e-Commerce

In the initial stage after the reform has been implemented, the e-commerce market is most likely to experience a downfall. As the sellers are not aware of the GST rules and regulations and complying with the objectives put forth in the GST bill will be difficult. By the time the sellers are getting registered with the GST, most of the time will pass and it can lead to financial losses. But as expected the market will pick up later on due to reduction in the price of the goods.

Small sellers to Suffer

For the big e-commerce market players, it will be not a difficult to cope up with the losses for few months, but small e-commerce business will likely suffer from low operational profits or even losses in the worst case. It will be challenging for the small businesses to stand up beat with the low operational benefits. At the same time since fresh stocks would be dealt under the GST model, most of the sellers on the e-commerce market places are clueless about new stocks. Until and unless they are getting themselves registered, no dealer will like to sell stocks to them and this has adversely impacted their sales.

Tax Filing Turning Into Hassle

In India the digitalization has not turned pan-state-oriented. With such shortcomings, it will be difficult for the e-commerce businesses to get enrolled under the GST tax structure. Though GST has eased up the logistics movement but it has certainly put pressure on the businesses to first get organized and they do the business. But the good news would be that draconian effects of the taxation will be dealt away with. Cascading effects of the tax would be in the books only from now on and this will impact the purchasing power of the customers where they can buy more stuffs with the same level of income.

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