Ecommerce website is the best available option for business aspirants to enter into a better business world and get success in the future. As the world is moving more into the digital realm every day, to retain a competitive edge is necessary to meet shifting market dynamics and customer demands.

1. Impact of GST on Ecommerce Market
Place – Here Is What You Need To Know

2. • Goods and Services Tax (GST) is a single tax reform that is applicable
across all states in India. This GST taxation will replace all the existing
indirect taxes such as sales tax, service tax, VAT, CST, entertainment
tax, luxury tax etc.
• The vision behind this taxing is to bring the nation together under a
single tax structure, right from manufacturers to end consumers
creating a unified common market.

3. • India has started to roll out with the new era taxation of GST from 1st
July, 2017. Ecommerce industries will have noticeable impact with GST.
• This taxation structure is expected to rationalize seamless integration of
goods and services across India. Let us explore the positive and negative
impacts on ecommerce marketplace at various stages.

4. Major Changes on Ecommerce:
 Registration - Under GST all ecommerce business operators are mandatorily
required to register irrespective of their turn over.
 Listings – Harmonized System Nomenclature code (HSN) is a globally
accepted nomenclature for classifying traded products. Tax rate that is
applicable for a particular HSN code will be used for computing all taxes. All
sellers will have to enter this HSN code of all the products on their dashboard
as a compliance requirement.

5. Filing of GSTR-8 – – Ecommerce business operators have to file a special tax
GSTR-8 which will be containing tax details that is collected from their suppliers’
sales.
In addition they also have to file their monthly return taxes GSTR-1 and GSTR-2
and GSTR-9, an annual return.

6. Positive Effects:
 Tax-Credit - With GST implementation online business sellers can claim their
currently paid service tax on commission. This service tax amount can be used
as an input credit that will increases their profit margin.
 Eliminating Tax Cascading – With GST implementation, all taxes are
integrated into uniform tax. This will bring down overall cost. With this
uniform tax dispute between goods and services will end up.

7.  Reduction in logistic costs – At present for logistics, ecommerce sellers are
paying border taxes that are levied for movement of goods from one state to
another.
 With GST the costs for logistics movement will come down. Also the separate
paper work for each state won’t be needed. Hence delivery of products will
be made faster.

8.  Ease of process – Under GST generating invoice will become easier as the
invoices will only include HSN number for distinguishing between sales of
different goods.
 The invoices uploaded by the sellers will be visible to buyers. Hence online
sellers will get their tax burden reduce and transparency is increased.

9. Challenges:
 TCS deduction - It is expected online marketers will be impacted by TCS (Tax
Collection at Source) by market places. It has made mandatory that
ecommerce business owners have to pay tax on the price of goods purchased
from suppliers.
 Decline of Discounts – As discounts will attract extra taxes under GST,
discounts offering often may reduce.

10. Complex in returns and cancellations – Online sellers will have
cancellation fees of 18%. They will have to bear this tax amount and
collect at the source and have to wait for refund from government in
the cases of cancellations. Hence ecommerce business will face a
huge disadvantage with these refund and cancellation issues.

11. From both the perspectives of taxation and operations,
ecommerce business will gain major positive impacts.
On the other hand, any new changes introduced will have their
own set of challenges. However GST will bring more transparency
and ease of process which will be a boon to the ecommerce
industry.

12. GST taxation will redefine the current market and create a
uniformity and simplification in the system.
To sum it up, GST renders a perfect blend of easy
procurement for buyers and simplified selling for sellers.
-- By,
Ecommerce Website Development In Chennai

13. Website : www.jayamwebsolutions.com
Phone : 044 - 2276 1701
Mobile : +91 - 96 77 87 6445
E-mail : marketing@jayamwebsolutions.com