Before 2017, Indian citizens had to navigate 17 different types of Indirect taxes. Today, we follow the policy of “One nation, One tax” – the GST. But, do we really know if it has worked?<\/p>\n
Read on to know the long and short term impact of GST on eCommerce businesses.<\/p>\n
Under the GST regime, all products and services are uniformly taxed across the nation. There has been a significant decrease in the number of taxes that businesses had to pay.<\/p>\n
It has also become easier for the government to keep track of tax evasions and illegal activities.<\/p>\n
GST on eCommerce businesses has largely increased employment opportunities in this sector, has increased the ease of doing business, improved cross border trade, and has given a boost to entrepreneurs and innovators.<\/p>\n
In India, the informal sector accounts for more than 93% of the working population. With the implementation of GST, the Indian government saw an addition of 4 million salaried people<\/a> from September 2017 to April 2018.<\/p>\n Why? For eCommerce sellers, the biggest advantage of GST had been the input tax credit. <\/strong>This gave incentives to businesses to register themselves.<\/p>\n (\ud83d\udca1 Input Tax Credit:<\/strong> If a seller has already paid taxes when buying raw materials, the tax they pay for the final product is adjusted.)<\/p>\n Registering your small business with the government gives you a whole host of benefits. With relevant and updated documents you can take loans from the government, banks or non-banking financial companies.<\/p>\n This access to formal credit not only protects you from scams, frauds, and arbitrary interests imposed by unofficial loan sharks, it also helps grow your business profit margins.<\/p><\/blockquote>\n Want to know more about the basics of GST? Here’s a short trailer of our free course by mojoVersity<\/a><\/strong> – our very own learning initiative platform.<\/p>\n