Good and Services Tax or GST is all set to roll out from 1st July 2017, and various ecommerce giants like Amazon, Flipkart, Myntra, Jabong, Tata CliQ, Paytm Mall and more have come up with never before discounts and numerous lucrative offers across the month. All the ecommerce websites have been hurrying vigorously in order to exhaust all their existing stocks before GST kicks offs. There have been discounts and offers on various renowned brands and not only that under pre-GST sale many brands that were never seen on discounts were also out at amazing never before prices.
During the month of June, consumers made the most out of these pre-GST sales and brought themselves large electronics appliances, gadgets, accessories and branded fashion apparels. They've groped the offers and with huge discounts and cashbacks, well, all these are now going to come to an end after 1st July'17. Large appliances like air conditions, refrigerators, televisions, washing machines and more are going to become comparatively expensive as of now. The adverse effect can also be seen on gadgets, electronic accessories and branded apparels, which are also going to become expensive after GST rolls in on 1st July'2017.
Below we've highlighted a few points that shall reflect the GST impact on online shopping consumers:
- Freebies are expected to be taxed
- Full stop on heavy discounts
- Returns and cancellations, to become almost difficult
- Your online orders shall now reach you at a faster pace
- For any desired product, consumers will also get access to multiple sellers and competitive prices
It's not just the consumers who are going to face the burden of GST, major E-commerce operators and the sellers are also going to face the same.Know below, how GST kick start will affect the Giants:
- E-commerce platforms to collect the tax on every transaction from the suppliers
- They will be responsible for filing monthly and annual returns.
- Ecommerce companies will have to bear the tax in case of Returns and Cancellations.
- These firms will have to wait for refunds from government, in case of Returns and Cancellations
- On discounted products, ecommerce firms will have to pay the tax for the item it has purchased from the seller.
- Sellers having medium and small business, who work on tight margins, are now going to face more problems.