E-Commerce Sellers Fear Billing Chaos as GST Slabs Change Before Diwali Sales
E-commerce vendors brace for GST compliance chaos if slab changes hit during festive season, raising risk of billing glitches and penalties.
GST Rejig May Disrupt Festive E-Commerce Invoicing, Say Online Sellers
MUMBAI — With India’s festive shopping season just weeks away, e-commerce sellers on Amazon and Flipkart are warning of possible billing and compliance glitches as the government revises GST rates. Sellers say delays in updating tax codes on marketplace systems could trigger invoicing errors, filing mismatches, and penalties during peak sales.
Risk of invoicing errors during peak orders
The revised GST slabs, expected to come into effect as early as September 22, are causing confusion over when and how to update product tax codes.
“Listings on all platforms must reflect the new rates promptly. Any delay in syncing billing or inventory software could result in incorrect GST filings,” said Sachin Manilal Gala, an online seller on multiple platforms.
Chirag Haria, another major seller, raised timing concerns: “If a 12% tax slab is removed and products shift to 5% or 18%, how do we handle transactions that occur exactly at midnight on the day of implementation?”
Complications from product returns 🔄
Sellers fear a surge in returns as customers may reorder items to benefit from lower GST rates. “A product sold at 12% GST could be returned and resold at 5%, creating accounting discrepancies,” one seller said.
Platforms yet to respond
Amazon, Flipkart, Myntra, and Meesho have yet to comment on whether their systems will be updated in time. The first leg of mega online sales begins just before Navaratri, with the biggest surge expected closer to Diwali. Any last-minute GST cuts could disrupt pre-Diwali sales momentum, sellers warned.
