Online purchase costs you more in India with new GST rules beware
I am an online purchaser. I like to purchase online because of the unique advantages
- You have wide variety of choices
- you have price comparisons
- your have color, shape size choice for home appliances
- you can do purchases from the comfort of the house
- You have fabulous offers from the shoppers and online portals
Suddenly I realized that that I am wasting my time and money by going for online purchases. It actually costs us more than a price you buy from a retailer or whole sale. This is true even with online recharging, online ticket booking and any thing on the internet. This is more evident in India with the new
financial constrains and GST rules.
‘The end of freebies and discounts’ says Economic Times in an article ‘How GST will change your online shopping experience from July 1’ on January 27th 2017.
Used to mega discounts and freebies? There may not be many in future because they will attract an additional tax. Also, since an e-commerce company will have
to pay the tax on the price it has purchased the goods from the supplier, it will not be worth its while to offer discount in many cases. GST Impact on online shopping
Recently I have spend many hours to buy a flight ticket online from my place, Srikalhasti to Hyderabad and search Google for cheap flights. As usual google displayed thousands of websites offering discount benefits. I found the cheapest flight is through clear trip on a day I chose. I thought that I will be gaining at least a thousand through this offer.
The reality was different. As I proceed from the first screen to the final screen to payment a thousand more was added to the initial amount with different names.
- Seat selection
- Conveyance charges extra. Conveyance charges are online booking charges. I do not understand why should I pay this amount? .
This Rs.410/- is the result of GST in India. I am forced to pay an extra amount and there is no gain with online booking.
GST will have a negative effect on online booking of flights because all airlines in India charge convenience fees ranging from Indian rupees 75 to 150 per passenger on all types of online payments. All booking portals charge this convenience charges and they also charge cancellation charges. Now a days better book the flight tickets directly from the airports. Why should I pay more money through online portals and why Indian Government encourage online transactions or cashless transactions when they cannot offer benefits