Ecom firms complete tax system overhaul ahead of festival season

Companies update platforms, train sellers on new tax codes

- PEERZADA ABRAR

Major Indian ecommerce companies, including Flipkart and Amazon, have completed technical preparations for the country's simplified two-tier goods and services tax (GST) structure ahead of the shopping season, positioning themselves to capitalise on festival sales, which are projected to grow 27 per cent to 1.2 trillion.

The companies have updated their platforms and trained thousands of their sellers on the new tax codes, which take effect on September 22, just as the industry enters its most lucrative period.

"Technology has played a pivotal role in developing backend solutions, giving sellers clear visibility into the revised GST codes and enabling a seamless transition to the new tax framework," said an executive at a leading ecommerce firm.

"Compliance and ease of doing business have significantly improved for our sellers," the executive added.

The streamlined GST structure is expected to boost sales by 15-20 per cent as retailers pass on tax savings to consumers during the peak shopping weeks.