How GST will affect the online shoppers
The most awaited GST implementation will definitely bring some remarkable shift in the consumer behavior. Many of us don’t even know what exactly is going to happen, but there will be a change for sure due to the GST from 1st of July, 2017. Last few years saw tremendous growth and popularity of online stores owing to a number of factors. The low cost offers, seasonal discount and festive deals kept it all very exciting to shop online. Moreover, when the price of same product was compared in online and offline stores, there was a difference as the online marketplaces were kept free of a number of taxes. Also, they had not to maintain the infrastructure of physical stores and were directly meeting the customers on web and the orders were fulfilled easily. So, we all had a good time shopping online.
Now, what is the buzz in online stores about GST?
With the GST rolling out on 1st July, the online stores are trying to get rid of their old stocks by offering good offers. All the stores are clearing their pending stocks with 25 to as much as 90% discount offers. But, the scenario will change shortly with new tax laws.
What will happen to global market places?
The global players like amazon or ebay transact in foreign currencies and government say regarding their rules is yet to be announced. So, if you prefer to shop on similar stores, nothing is going change immediately.
Online shopping may get a little expensive
As of now, the sellers listed on market places do not pay any kind of tax to them. But, under the GST, they need to pay a tax of 1% of the total sales made through that website. Since, the sellers will have to pay a tax, they may not compromise with the cost of the product and hence the prices you pay to them will be high. This will be implemented at a later stage.
Less paperwork and faster delivery
The interstate transportation of goods will be faster and you will get your products faster. The reason being, the seller does not need to file extra papers for interstate sales. There will not be extra bills for logistics and state tax. So, the time spent in paperwork will be saved to make faster deliveries.
Returns and cancellation rules may change
Ecommerce companies will collect tax from the sellers and will pay to the government. But, in case of returns and cancellations which is as much as 18%, the companies will get a tax refund from the government only after a good amount of time. So, this comes as a cash-flow disadvantage to the companies for which they may need to design some other return and cancellation policies affecting the buyers.
Will the mega discount and online sales end?
There is a little possibility. Since the ecommerce companies will be paying a tax on the price of product it has purchased from the seller, it will not be wise to offer those products at discounted rate. This will severely damage their profit, so there may not be frequent online sales as we are enjoying now.
So, all the online shoppers may remain informed of the upcoming trend in online stores to take wise decision. If you have anything in your buying list, then don’t wait for long. Take advantage of the GST sales on online stores and have products at great price. Who knows how much you will pay for the same after GST? Happy Shopping!