Will your online shopping be affected due to GST?
Sources have stated that when Goods and Service Tax (GST) comes into force most of the online shopping will become expensive. At present e-commerce websites do not collects any tax, and as per GST they will collect tax at a fixed rate of 1% while paying to the sellers in the websites. Moreover the goods will reach you faster as the retailers need not have to submit separate paperwork from each state.
We all are used to discounts and freebies. There may not be many as this includes an additional tax. Apart from this if you buy from portals like Amazon.com and Ebay.com they transact foreign currency and the Indian government has yet to come up with clarification of rules for such online operators.
The returns and challenges will become difficult. It
is added that e-commerce companies have a return or cancellation rate of 18%
and the companies will data-face a major cash flow disadvantage in case of returns
and cancellations.