According to reports, marketplaces haven’t yet managed 100% Goods and Services Tax (GST) compliant seller bases. Amazon has only a small portion prepared and Paytm Mall about 70%. Etailers are doing everything they possibly can to ease things for sellers to register under the new tax. This way they can reduce seller base depletion.
Amazon rolled out ‘A-Z GST Guide’, Flipkart ‘GST Genie’ and Snapdeal ‘GST Guru’, to assist sellers understand the GST regime. Flipkart has also applied for GST Suvidha license to offer its sellers tax benefits. Shopclues, Amazon and Flipkart have partnered with taxation experts too to make sellers GST compliant before July 1.
But, could the negative effects of GST be graver than expected for online sellers?
The CTO and co-founder of Instamojo, Aditya Sengupta said, “Sellers who drive the larger share of the volume have already registered but some sellers from the SME segment will pull back in immediate effect to the GST implementation, but the impact will not last too long.”
Amazon India’s GM and director, Gopal Pillai said, “Through regular interactions with our sellers, we observed that a lot of them were concerned about nuances of GST. Thus, we partnered with ClearTax to help them file and reconcile their tax returns conveniently and transition seamlessly through GST.”