Now, that the formal announcement for the landmark GST has been made, analysts estimate that GST shall be messier that what is thought to be. Customers who are ought to benefit from the provisions under the law shall also see a shift in their online buying experience with GST roll out.
Here's a look at few of the major transitions that shall occur
1. Discount offerings at various e-tailers shall decrease: Physical stores have been hit really hard across goods but with GST online e-commerce company shall not be able to offer discount offers as frequently as discounts shall attract additional tax burden under GST. The taxes shall be payable by these companies as and when they purchase the products from the manufacturer or supplier.
2. Cancellation and Refund Policy will become more stringent and hence difficult: The cancellation fee attracted by e-commerce company amounts to approximately 18%. So, with tax collections at source, in cases of return and cancellation, such companies will have to bear tax on such purchases upfront and wait for refund from the government in due course. The disruption in the cash flow shall lure the companies to make their policies with respect to cancellation and return more stringent which until now were very easy.
3. Faster Delivery: With lesser paper work with GST implementation that is deemed to reduce cascading effect, in respect of each of the state through which the seller's good pass, you shall be better off in receiving your ordered goods quite early.