The government’s blueprint for ‘Start Up India, Stand Up India’ has been a true shot in the arm for new ventures in the country. While the taxation angle and the issue regarding ease-of-doing business in India were addressed in the PM’s speech, the entrepreneurial community as a whole expects GST to become a reality this Budget session. Additionally, tax incentives for employees working at startups will be a good step forward. Policy support for startups that are trying to list themselves with an IPO is another major expectation of companies that are now looking at further cementing their market standing.
The GST roll-out in 2016 will be a good facilitator for growth in the ecommerce industry. This will enable us to resolve many supply-chain issues, which are challenging for the market players. Moreover, a uniform law across the country will favourably impact the price-cost margins of e-tailing firms. The tax uniformity will not only create a conducive environment for the ecommerce sector, but will also help in employment generation. The year 2016 is expected to generate about 2.5 lakh jobs in the online marketplace.
The Finance Ministry’s plan to rationalise and reduce the merchant fees levied on online transactions has been welcomed across the ecommerce industry. Extra charges on credit and debit cards are a liability and should be phased out. The future of ecommerce is plastic and by offering rebates to merchants and consumers, we can boost our sales and encourage online transactions. Incentivising cashless transactions will switch customers from cash-on-delivery to electronic payments. We are eagerly looking forward to the NPCI’s Unified Payments Interface, which will reduce COD transactions and simplify online payments. Having a uniform payment gateway will take ecommerce to the next level.
The writer is Co-founder and CEO, ShopClues