- Time taking work : Guys an online seller was happy with VAT/CST because it was easy for them. They were selling products online, and they were paying tax quarterly it was good option for online sellers. But now in GST sellers are paying taxes monthly. They are completing sales report because they will have to pay before 20th of every month. Now they are making reports in every month and this is a big headache.
- Sale growth decreased : Tax rate was low for some sellers like footwear, clothes etc now tax rate is high for example for footwear category tax rate was 5% and 14.5% but now its 18%. So sellers are increasing selling prices too. Because they are now paying some extra money in GST.
- Composition scheme not allowed : Many offline business have opted for composition scheme for benefit. It can reduce tax rate like if you are paying 18% tax for selling shoes, your tax slab is 18% and if you are opting for composition scheme your tax slab will 2%. But this scheme is not for online sellers because online seller are selling their products to all over India and this scheme is only for those who are selling in their state only. It was good if govt allow online seller to opt it.
- Some benefit in GST for online sellers : There are some benefit for online sellers and i will say this is not benefit its an option to stay on online selling business. Snapdeal, flipkart, amazon all sites are giving commission invoice credit, COD credit Note etc to every seller and they can use it as a input tax while paying GST return. If you are online seller your tax will be low if you will use these input. You can use credit note, commission invoice, product purchase input tax to reduce tax amount.
- Suggestion for online sellers : If you are selling online i will suggest you to hire a good CA. And start one more business because it will be a backup plan for your business. Now it is going difficult to stay with online selling only. And if you want to do only online business then you should increase products category which in demand. You should think about which product’s demand is high these day in market and try demanding products not only one category.
Hope my article was helpful for you please like and share this post with your friends and if you want to ask related online selling, you can ask in comment box. Thank you