The race to be compliant with Goods and Services Tax (GST) is on. Marketplaces are educating sellers in whatever way they can to have their seller base prepared for the roll out of GST. Amazon is said to have only one-third sellers registered under the impending tax. Paytm, on the other hand, has around 70% of active sellers on Paytm Mall ready for the new tax regime.
Paytm Mall, the online marketplace has made it compulsory, ahead of 1st July, for sellers to be GST compliant in order to sell on its platform.
Amit Sinha, chief operating officer at Paytm Mall said, “We have implemented GST-compliance measures across our supply chain in advance to ensure quick and efficient delivery of items ordered on Paytm Mall. Our seller platform is also GST-ready and will shift to the new tax structures on Day 1 of the official launch.”
The ecommerce company has stated that out of its active sellers on the platform 70% are GST compliant. Others are still enrolling through a special helpdesk set up by Paytm. To ensure compliance, the marketplace is not changing sellers for this facility.
According to the Alibaba-backed company, 1.2 lakh sellers were onboard previously. The platform has tied up with ClearTax, an online tax-filing platform, to offer merchants the Application Service Provider (ASP) interface.
In a statement, the online retailer mentioned that GST compliant sellers have around 90 million products mapped to HSN codes for a smooth transition to the new tax. To avoid complications with seller’s existing inventory, the merchant, like Flipkart and Amazon hosted a mega sales event to clear off stocks.