The Indian offline and online retail ecosystem will be strengthened and organized with a comprehensive roll out of policies such as FDI and GST. The recently passed Goods and Services Tax bill is expected to address several key issues faced by e-commerce companies today.
In India, the e-commerce segment has successfully attracted customers by throwing away products at discounted rates. Moreover, by conducting regular shopping deals, the companies managed to catch the attention of customers. Moreover, the government has pushed smaller companies to regain space in the online sector with Digital India initiatives.
Flipkart made changes in the pattern for GST
According to sources, Flipkart has formed a core group to study the implications of GST. Moreover, the company has made few refreshed changes in the overall working patterns as per the guidelines framed by the government.
Detailed to-do list for the GST framed
As per reports, Flipkart has framed a detailed to-do list for the GST mandate, which the company is planning to rollout in April 2017. It showcases the modifications made the management around the various operational aspects which include training across the network of sellers on its platforms.
Responding to media, a spokesperson of Flipkart disclosed that the main priority of the company over the next few months would be to make the required changes to its ERP system.
Flipkart to provide training for sellers and internal staff
Moreover, the company has reportedly established partnerships with consultants to provide training for both sellers and internal accounting staff. In the meantime, the company will also actively engage with the government during deliberations in the law-making process.
According to proposed GST guidelines, each and every online marketplace should collect taxes at the source and pay it on behalf of registered sellers on their platform. However, this is a significant roadblock for many e-commerce companies because they lack clarify on the aggregators versus the operator’s model. As per the newly launched GST policy, aggregators need not have to pay tax while operators have to.
Meanwhile, Flipkart is gearing up to open a new warehouse in Lucknow. With this, the company will have a total of 18 fulfillment centers across India. Flipkart also hired 1000 temporary employees to cater to the demands of the large section of people due to the upcoming Big Billion Days and festive season.