Shopping Online? This is the best time before GST - GST will change your experience
- Surjatapa Adak
- Jun 26, 2017
- 2 min read
After some days Goods and services tax (GST) will roll out, so e-commerce retailers are trying to sell out their pending stocks. Till this month e-commerce traders are giving a huge amount of discounts to their customers. This discounts starts from 25 percent to sometimes touching near 90 percent.
As per the experts this is the best time to buy online as from July 1st onwards, online shopping will get much expensive for the buyers.
Collection of Tax
Till now, the websites of e-commerce is not collecting a tax. But under GST, e-commerce will collect tax of one percent from those customers who are registered in their websites. So the smart buy will more expensive.
Delivery process will get Faster
Within GST, buyers will get faster delivery. Currently, e-commerce retailers have to file a separate paperwork for every state. Now retailers have to file a separate bill for logistics, state tax etc. Under GST, this paperwork task will end and buyers will get their product faster.
End of Discount on Product
To attract buyers online markets retailers give an attractive discount. After rollout of GST, this process will end because of additional tax have to be paid to government. Since e-commerce companies have to pay the tax on the price it has purchased the goods from the suppliers, it will not worthy while offering discounts in many cases.
Global players shopping
E-commerce websites like Amazon.in or eBay.in transact in foreign currency. Now the governments came up with clarification of rules for foreign currency like dealing operators.
Difficulty in cancellation or return process
Till now, the process of return and cancellation is very easy in online shopping. After GST, this process will have to face many challenges. Though e-commerce will collect tax at source e-commerce companies will have to pay cancellation or return charges nearly 18%. The companies will have to bear the tax amount on their own, and later get a refund from the government in case of cancellation or return of a product. The experts think that after rolling out of GST the company will face many disadvantages like cash flow due to cancellation and return process.
- Surjatapa Adak
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