A fortnight after GST implementation across country, sellers and online marketers continue to evaluate the impact of the new tax system. Some of them have adopted a wait-and-watch strategy and many others whose margins could be hit are holding talks with vendors.
GST in the long run
The initial plunge in numbers of sellers by 20-30% across market indicates the wait-and-watch strategy but the feedback from different marketplaces highlights GST as a beneficial tax in the in the near future. But currently there has been no revision in the margins paid by sellers to ecommerce platforms.
“On the Flipkart platform, 95% of our top-sellers are GST compliant .Very few sellers have dropped off the marketplace and it has been business as usual with the number of active sellers in a month remaining constant on the platform,” said Nishant Gupta, director of marketplace on Flipkart.
Flipkart lastly had a little over 1lakh sellers, with no report about the number of active sellers right now.
Businessmen in News
Shaival Gandhi, owner of Pace Sports said “Most of the sellers who have been selling from small setups have opted out of selling on ecommerce platforms due to lack of stocks. As we are the importers and wholesalers for most of our products on online platforms, we are able to absorb the new tax rates from our margins “.
GST Impact on sales
“We have been negotiating with the brands we procure and sell from as our margin on sale for the smartphone category has come down to 1% instead of 2% we used to make earlier. GST on tablets is also high at 18%. From a marketplace’s view, we will get the input tax credit on GST and hence they will not change the margins,” said Sumanth Lingala, owner of Green Mobiles, retailer of electronic goods.