Mr.Ankit Jain,CEO, EBazar.Ninja is an avid reader and keeps pace with the latest happenings in the financial and e-comm world.His company EBazar.Ninja is doing fairly well in the e-tailers industry and wishes to expand his vista furthermore. In this context his current column is on GST bill which is the talk of the hour in India as this will be beneficial to e-comm sector.
What is going to be the impact of the GST(Goods & Service Tax) on Indian economy as well as E commerce sector?
GST is one the most ambitious and significant reform which India ever attempted and it will have a long lasting impact on the Indian economy. By eradicating the confusion of taxes that are prevailing in the country’s current scenario- is it centres tax, interstate tax, state tax and local tax which till now it will be replaced by GST in India. It is most likely to metamorphose Indian economy which was plagued by taxation and ambiguities for long, GST is mostly likely to take the show forward by giving uniformity in taxation system .Mostly foreign investors have complaints about taxation policies. Now, after implementation of the GST they will have a sigh of relief.
Now, speaking about E commerce, it will have a positive impact of GST bill. It was a nascent sector in India which just took its baby steps in these two years and now having a sprint. The growth of e commerce sector in terms of terms of revenue generation and shipments have been phenomenal. E-tailers or marketplaces are the intermediaries between the buyer and seller. They provide a platform for to showcase products to potential customers.
The impact will be it will help to create unified market across India and allow free movement of goods across India. It will also evade the cascading affect of tax on the customers which will bring efficiency in product costs. E commerce sector in recent times has caught eyeballs and brains of the customers and is the next BIG industry in the market. In them indirect tax are real culprits. It is going to be sighing of relief for the e- commerce sector also but they need to engage professionals to have right compliance of GST. It will also open a new avenue for many budding e-tailers but at the same they need to adopt a new model called “Destination based consumption tax”.
In this the State in which the package is delivered gets the tax and not the place where it is booked. The data for the actual consumption needs to furnish while filing the GST returns in the future. And one more advantage is with the advent of GST, we are hopeful to get consistent slabs of it across the states, including the warehouses strategies is no longer based on tax parameters.
One more that it will give more access to the customers. It is going to be interesting times ahead with the commencement of GST in India.