A Study On Impact Of Gst On Pricing Strategies And Tax Structure In E-Commerce

Abstract

The introduction of the Goods and Services Tax (GST) has significantly reshaped the tax landscape for e-commerce businesses in India. This study aims to analyze the impact of GST on pricing strategies and the overall tax structure within the e-commerce sector, with a particular focus on business-to-business (B2B) transactions. The unified GST regime replaced a complex system of multiple indirect taxes, leading to changes in how e-commerce businesses operate, price their products, and manage taxation. This study explores how GST has affected pricing strategies by removing cascading taxes, improving input tax credit availability, and promoting transparency in pricing. However, it also highlights the challenges businesses face in complying with GST regulations, such as tax collection at source (TCS), multiple return filings, and the complexities of reconciling transactions.Through an in-depth analysis of e-commerce platforms and B2B transactions in Chennai, this research examines whether GST has led to increased or reduced prices for end customers and how it has influenced competitiveness within the market. It also explores how small and medium enterprises (SMEs) have adapted to these tax changes compared to larger firms. The study uses both qualitative and quantitative methods, including case studies and financial data analysis, to assess the broader economic and regulatory impacts of GST on the e-commerce sector. The findings aim to provide insights into the evolving dynamics of e-commerce pricing and taxation under GST, offering recommendations for businesses and policymakers to optimize compliance and competitiveness in this rapidly growing industry.