An Assessment of Impact of GST on India’s Online Retail Sector

S. Kumar
Journal article Economic Affairs • December 2018 India

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(English, 12 pages)


The online retail market in India is relatively new and still adapting to the global business environment. Also, conventional tax regime was neither able to cover all e-commerce transactions nor give it a proper space to flourish. The launch of Goods and Services Tax (GST) changed the taxation scenario in India from a very complex tax structure comprising of around 500 different kinds of taxes to a simpler tax regime with just 3 broad tax categories while having both positive and negative impacts on industries operating in organized and unorganized manner. The objective of this exploratory, qualitative, and non-empirical paper is to explore and present the consequences of the introduction of GST on the Indian Economy with special reference to the online retail industry in India. Researchers reviewed the reports of various departments of Government of India (such as the Central Board of Excise and Customs); the GST Council reports up to 30th meeting held on September 28th 2018; Honorable Finance Minister’s speech on GST; and interviews of government officials. This paper may provide useful insights to the online retailers, suppliers and most importantly, the common buyers in understanding the changes brought by GST and help the GST Council in making further amendments in the Act.





Economic Affairs

Economic Affairs, Quarterly Journal of Economics, is a Peer-Review publication based on multi-dis... see more