It’s raining discounts on e-commerce sites, thanks to GST

Online shoppers have a special reason to rejoice, thanks to the Goods and Services Tax (GST) to be implemented on July 1. To ensure that their stock is cleared before the new tax regime comes into action, top players like Flipkart, Amazon and ShopClues are going all out on discounts – up to 80 percent – for the longest duration ever.

The GST imposition is expected to cause losses for the retailers as the tax margins are going to be substantially higher. For instance, according to the GST laws, garments that cost less than Rs 1,000 will have five percent tax, while those that cost more than Rs 1,000 will have 12 percent tax.

According to media reports, it is upon the request of their seller partners that the online marketplaces are hosting the sale so that they can empty the current inventory. Apparently, the sellers are cautious. Although the normal practice is to keep stock in bulk and then sell it according to orders, now they are placing orders with dealers only after receiving confirmations.

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