what will be impact on e-commerce industry

E-commerce startups taking guidance to control compliance cost

When orders placed through e-commerce websites are cancelled or items are returned due to any reasons like manufacturing defect, etc after 01st of July or simply said supply TCS has been levied although the supply eventually did not materialize fully will increase the compliance cost for these companies as Return or cancellation rate in India is approximately 15-18% and more than two third of the transactions are on COD, reconciliation for which happens about 7-15 days later.

Further under GST, e-commerce players will be liable to GST on interstate stock transfers as they shall be liable to IGST. Both these issues have bought together a need for cost optimisation policies on which Chartered accountants are working.