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The e-commerce space, which has rapidly evolved in the country, continues to face several challenges in the areas of taxation, logistics, payments, Internet penetration and skilled man power.
According to a CII-Deloitte report on e-commerce in India, the lack of uniform tax structure leads to issues such as double-taxation or impediments in the free flow of goods across the country. The report believes that the Goods and Services Tax (GST) is expected to help overcome these challenges through a uniform tax structure.
In addition, e-commerce companies face increasing logistics costs related to last-mile delivery, especially on account of return orders. The report believes that e-commerce companies require innovative and analytical-driven models to focus improve on operational efficiencies in the logistics value chain.
Chandrajit Banerjee, Director-General, Confederation of Indian Industry, “E-commerce industry has been directly impacting the MSMEs in India and has a favourable cascading effect on other industries. In the long term, it has the potential to generate employment, increase export revenues and enhance tax-collections”.
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