Ever since the NDA government starts its rule, nation facing some denotative moves by the rulers. After the demonetisation, the Indian e-commerce market is about to face some serious changes by this month end as the GST (Goods and Service Tax) is about to get implement from the 1st of July.
Impact of GST Implementation in online Retail Market
Though, GST is likely considered as the favor to the Indian products and it helps to set uniform price over the consumables all over the nation, there may be some confusion and problems can occurs during the initial period. As per the analysis by the experts, still majority of the marketers and sellers are not fully aware of the GST protocols which will surely leads to lot of chaos and confusions.
According the reports cited in the Money Control official website, several retailers have expressed their worries over the implementation of GST and they are suggesting that there will be around 10 – 15% slow down in the retailer market due to the GST implementation. The occurrence of products shortage can be witnessed due to the delisting of small scale sellers who are considered as the NON-GST sellers where their annual turnover will be below 20 Lakhs from the e-commerce giant.
Following the implementation of GST in online retail market, India’s e-commerce giant flipkart and snap deal has issued a notice to its all sellers to submit their GST number within 28th of June. The both giants have high number of small retailers all over the nation which might be over lakh in numbers. It is expected that there will be steep decline in the seller’s number in those e-commerce platform over the GST issue on upcoming months. The spokesperson of the AIOVA (All India Online Vendors Association) stated that the impact of GST will surely have its impact on online retailers.