New Tax System Brings Pain, Paperwork to India's Online Sellers
- New GST is one of the biggest tax reforms in nation’s history
- Amazon established GST Cafés to help merchants comply
Here's What You'll Pay After India's Massive Tax Overhaul
India’s new tax regime is causing widespread headaches for small merchants and the e-commerce companies they work with.
The Goods and Services Tax, which went into effect July 1, has been touted as the biggest tax reform since the country’s independence seven decades ago, aimed at replacing hundreds of regional and federal levies with a standardized national tax. But retailers are discovering the new system is anything but simple. They’re battling a dizzying array of documentation requirements and product classifications, which affect the percentage of tax charged, that threaten to choke businesses with bureaucracy. Thousands of small merchants have been dropped from e-commerce sites because they can’t meet the new requirements.