Effects of GST on the E-commerce Industry in India

The execution of GST in India has brought a lot of advantages for the Indian e-commerce sector. Considering the fact that it is applicable across all Indian states, it has converted India into a unified tax market, mainly for e-commerce business. This article gives you an insight into the various advantages of GST for the e-commerce sector in India.

GST in India has replaced a number of indirect taxes like Central VAT, Central sales tax and Central Excise Duty to name a few. These have led to a dramatic reduction in compliance cost, facilitating seamless trade between industries and optimizing B2B e-commerce industry across the country.

Earlier, there wasn’t any specific tax law to regulate the Indian e-commerce industry. There were a lot of complexities in compliance of various applicable laws in different states of India. However, with the coming of GST, e-commerce companies now no longer have to face the complications of individual state tax laws.

GST has also simplified the logistics decisions, as currently the B2B e-commerce companies are enclosed within the individual state tax constraints. Previously, companies had to concentrate more on sourcing and warehousing based on tax implications, rather than convenience, distance or other strategic considerations. The implementation of GST has changed the scenario and now companies can have fewer, larger warehouses located strategically, and thus reduce their operating costs of logistics.

For a convenient GST experience for your e-commerce business, here are a few things that you need to keep in mind:

  1. Have your GST registrations done.

GST registration process can be done online through an online portal maintained by the Government of India. Click on this link to get your GST registration done.

2. Plan your warehousing requirement and logistics

E-commerce companies now have the choice to decide their warehouse size, location, inventory and operations management based on factors like manufacturing locations, proximity to consumption centres, optimization of goods movement, etc. This will lead to lower supply chain costs for manufacturers and reduced product prices for consumers.

3. Make use of technologies and platforms that help your business to be GST compliant.

The implementation of GST has given rise to a number of offline and online services that help you make your business GST ready. GST in Bharat is one such platform that can help your business become GST compliant. GST in Bharat helps you in calculating GST and reverse GST. This is one of the best platforms to use for e-commerce businesses to make sure that you save your time and money. This platform is absolutely free to use and you can even use the mobile app version of the website for Android phones. We highly recommend this website for GST calculation.

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