Tag Archives: eCommerce

GST Ecommerce

GST from the Perspective of an Ecommerce Website

GST (Goods and Service Tax) has been introduced to expand the tax net through 101st amendment of constitution. They say 101 is an auspicious number and therefore the rolling out of GST will have good effect in the economy. Goods and Services tax has come to effect from July 1, 2017. This new tax has rattled many small to medium sized businesses.

No matter which vertical a business belongs to, it has been affected – either positively or negatively.  It can be said without any doubt that implementation of GST was not easy especially in a country of such size and diversity. Such an enormous task has not been done by any other country of similar size as well as complexity. Simplifying tax structure is not an easy task. However, GST is aimed at simplifying as well as rationalising taxes, thereby helping goods to move from one part of the country to another seamlessly without any kind of discrimination among regions. This is expected to increase growth and at the same time improve ease of doing business.

In this blog, a comprehensive analysis will be done on the effects of GST on ecommerce website.

A section of the industry, especially from the online industry believes that GST is the best thing that could have happened to B2B ecommerce throughout India. One of the major advantages of ecommerce industry from this tax reform is the ability to maximize distributed inventory benefits. Here, there is no requirement of dealing with variables including optimisation of tax net.

Currently, it is being seen that different states of India impose entry taxes as per its requirements and many times from its whims. With GST in place now, the time is now not far away when these kinds of state-specific entry taxes will be done away with, thereby leading to rationalisation as well as simplification of taxes with the help of GST. From now on, there will be only one tax for the businesses to pay and that is GST.

Ecommerce and GST

There are three challenges regarding implementation of GST and they are –

1. Collection of tax at source itself
2. Proper treatment of returns on sales, cancellations, discounts, and replacements
3. There were certain clauses that are restricting or delaying implementation of GST bill.
Ambiguity around a few specific clauses in the GST draft bill still persists. Now, let’s check out how these challenges can be combated.

How to Combat These Challenges?

The bill suggests that ecommerce platforms have the responsibility of collecting the TCS on sale of goods as well as services that are made by the supplier. The filing of return is needed to be done on a monthly and yearly basis. This is needed to be done by the ecommerce platform. This becomes a huge accounting burden for the ecommerce sites because lakhs of sellers carry on transactions on these platforms on a daily basis through the ecommerce sites.

GST law suggests that it is the ecommerce aggregators that have to collect and deposit tax from each transaction at the rate of 1 per cent. If you are a trader or dealer then you would get the payment after the deduction of 1 per cent tax is done. Every online traders or dealers have to get registered under Goods and Services Tax even if the yearly turnover is less than 20 lakhs.

Till now in India, the Cash on Delivery (COD) mode is still a prevalent mode of ecommerce transaction. This is one of the reasons that the rate of cancellations as well as returns stand at around 15 to 18 per cent. In addition, it takes anywhere from 7 days to 15 days for cash reconciliations. This is a big challenge on part of the ecommerce platforms because unlike other offline business models there are certain distinctive variations and special problem scenarios such as –

• Returns take place in a different month than the sales booking
• Interstate cancellations of orders are quite common in ecommerce platforms

In case of returns, there are special provisions too. The GST law suggests that the reported supplies of ecommerce companies will be matched with the figures provided by the supplier in its return for outward supplies. If there are any kind of mismatch then redetermination of vendor’s output liability will be re-determined.

The law suggests that in case of returned products (especially the ones that are returned in the next month or even in the same month) the ecommerce firms have to claim refund of the tax from government.

What’s the Way Ahead?

GST brings with itself benefits as well as concern for ecommerce companies. However, the benefits outweigh the concerns when seen in aggregate. The present situation is that the ecommerce industry needs more clarity especially in terms of different ecommerce verticals such as tourism, ticketing, booking of resorts and hotels, events, and adventures.


Related Story :

How the GST Will Change IT Set-Ups in Organizations

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Understanding Superiority of Magento as Unequalled E-commerce Platform

Magento is one of the most sought after ecommerce platforms across the globe and it is also evident from the fact that more than 25 percent of all global ecommerce sites are powered by Magento. It is quite a commendable achievement due to a wide spectrum of ecommerce applications that are being poured into the fray, day in and day out.

There is virtually an explosion of plug and play ecommerce platforms that can to serve to any ecommerce platform that can possibly thought of. Magento continues to be popular in the face of such as breakneck competition and there are solid reasons for its popularity among developers of ecommerce sites.


Robust open source community

Among the three editions of Magento including the free Magento Community Edition, paid Magento Enterprise Edition, and hosted and paid Magento Go, the most sought after is its community edition that enjoys support of vast and possibly the largest and most vibrant developer community in the ecommerce domain.

Magento can be tweaked to improve its compatibility with your website. Developers usually prefer to access Magento Connect, the largest ecommerce app resource, for choosing and installing fascinating ecommerce extensions to add to functionalities of your store.

Thanks to the unrelenting efforts by its lively community, Magento is consistently updated to keep your site secure from the ecommerce point of view. In order to elevate your store’s security quotient, you are free to opt for the enterprise edition that complies with PCI Data Security Standard and provides a Secure Payment Gateway. Users can also access community for resolving technical issues or for troubleshooting.

Exclusively built for ecommerce

Magento has been originally designed as a purely ecommerce platform unlike its rivals that are developed as Content Management Platforms with added ecommerce functionalities via plugins.

It facilitates creation of ecommerce sites with a large offering of unique ecommerce features including, inventory management, customer segmentation, advanced management of suppliers and shipping, capabilities of up-selling and cross-selling, customer segmentation, and user dashboards to name a few.

Choice of selecting hosting services

Users are free to choose hosting services of their choice for Magento hosting platform for their ecommerce ventures. This way, they can opt for the most cost effective and suitable hosting service provider of their choice. The flexibility of selecting hosts is also significant while migrating from one host to another. In addition, you are also offered choice of a hosted platform with availability of Magento Go edition.

Grow your site without feeling a pinch

It is very common for ecommerce platform to levy additional charges, whenever any new feature is being added. However, you will be pleasantly surprised to find that Magento ecommerce platform is totally devoid of such incremental charges. You can continue to grow your sites by adding more and more features without having to pay any additional charges. Users are also able to enjoy freedom of adding as many products as they wish on any given page without feeling a pinch of additional expenditure.

Access third party apps with ease

Every ecommerce merchant feels that the site should be made richer and simpler by integrating ready to use third party apps for enhancing functionalities. Most of the available ecommerce platforms cannot provide such freedom to users, since it is in the hands of service provider to enable such third party apps. Magento puts you in total control with its extensive API that facilitates empowers you to add apps of your choice without any hassles.


No two ecommerce sites can be designed identically. This is due to the fact that every ecommerce store has its unique requirements and what is right for an online property vendor may not be suitable for a fashion retailer. There are multiple differentiating factors including size of the store, scale of operations, client service and so forth.

Magento understands the significance of modularity and customizability of ecommerce platform for creating right environment for managing diverse categories of online ventures. It also goes one step ahead and allows you to mould it to your satisfaction with right coding smarts. You can access its modularization capabilities for enhancing visitor experience by creating elegant front end layouts. It also allows redesigning backend workflows with code rewriting and modification of grids and events.

Blazing fast performance

Your ecommerce site must load within a short span of 2 seconds to make sure that most of the visitors are browsing your shop. It is observed that almost half of the people abandon their search if the site does not load within two seconds. Magento is a high performance platform that not only loads swiftly but also allows page caching, fast retrieval of data and instant processing of queries to name a few.

Mobile and SEO friendly

Magento is seamlessly optimized for all types of screens including smart phones. It offers drag and drop features, audio capabilities, and more for an enhanced shopping experience by using smart phones.

Magento boosts your SEO efforts by offering a powerful source code that consists of in-built features such as meta tags, URL rewrites, site maps, and SEO optimized URLs among others.

Supports operation of multiple websites

With help of a single backend of Magento ecommerce platform, users are free to operate multiple websites. Magento offers amazing freedom to create websites on different domains, different layouts, designs and more. If you are planning to operate in different categories this feature of Magento is perfect for you.

Explore overseas markets

Magento offers remarkable support for ecommerce sites that wish to explore trans-continental markets by providing facility to operate in multiple currencies and diverse tax categories. Users are also provided support for developing sites in different languages for enhancing shopping experience of overseas customers.

Magento ecommerce platform is for serious ecommerce merchants that are looking for a robust and long term platform for their ambitious venture. It may not be easy to build the site without any coding language. However, its lively community ensures that developers are supported with expert advice anytime they feel. Unlike a plethora of plug and play options Magento does not believe in fleecing users as they start growing progressively.

Go4hosting is leading Magento Service provider in India; helps you in hosting your hadoop application on Cloud Servers. Mail us your queries at [email protected] 

How to Choose the Best Ecommerce Platform for SEO

Entrepreneurs are keen to have a hosting solution that best meets their eCommerce needs.

It may be a shared hosting plan, or a dedicated server or a powerful virtualized environment, but in the final say it must fulfill their basic need – that is to deliver best experience to customers.

How to Choose the Best Ecommerce Platform for SEO

E commerce websites refer to online stores that allow products and services to be bought and sold.

Such websites need to be integrated with a reliable shopping cart application or a merchant account such as PayPal.

Importantly for best results, an eCommerce site must be search engine optimized.

Any hosting plan chosen for eCommerce must deliver a high level of performance, but with the hosting market flooded with myriad providers, the question on how to choose the best eCommerce platform for SEO is not easily answered.

Most of the hosting companies boast of delivering the best business grade web hosting solutions, coupled with security, back and restore tools.

Yet, you must do your own committed research to make a prudent selection.

The final choice will depend on your budget, the type of business and the traffic you expect to your site.

But first, here is a brief why Search Engine Optimization matters for an eCommerce site.

Any business person desires that his or her site must appear high on search result pages. A high ranking website drives free organic traffic and helps in increasing conversion rates, which in turn boosts company bottom line.

This is the singular reason why SEO is a crucial part of online marketing efforts.

With this in mind it makes sense for you to assess which hosting solution can deliver the best website optimized results for you.

Here are a few tips that may help you make a considered selection.


To start with, focus on speed, because quick website loading is a very important factor for an eCommerce site’s success.  Speed not only delivers good customer experience, but enhances SEO appreciably.

Online shoppers have notoriously low attention spans, and a delay of even one second can significantly push down conversion rates.

A study has revealed that a fourth of users will ditch a site if it takes more than 4 seconds to load.

To ensure speed, preferably look for a provider that makes use of CDN, or Content Delivery Network.


An online store that is open 24 X 7 and 365 days a year will deliver significantly better results than those having poor up-times. This means look for a provider who guarantees an up-time of at least 99.5%.

Apart from up-time, other factors that affect reliability are:

  • Type of hosting – You may decide to operate your eCommerce site either in-house or outsource it to a third party. Both models have their advantages and drawbacks. https://www.go4hosting.in/blog/dedicated-server/how-to-choose-the-best-ecommerce-platform-for-seo https://www.go4hosting.in/blog/dedicated-server/how-to-choose-the-best-ecommerce-platform-for-seo https://www.go4hosting.in/blog/dedicated-server/how-to-choose-the-best-ecommerce-platform-for-seo https://www.go4hosting.in/blog/dedicated-server/how-to-choose-the-best-ecommerce-platform-for-seo Outsourcing to an inexperienced hosting provider can result in delays in fixing problems.
  • Redundancy – The hosting solution must have multiple layers of redundancy or adequate backup to reinforce its reliability. If any hardware or a point in network experiences breakdown, adequate redundancy will preempt hosting disasters.
  • Scalability – There could be a sudden swell in demand for your brand or services, with consequent surge in traffic to your site. The hosting solution you look for must be able to adjust a spike, by offering you scalability features.

In the final say, the best eCommerce platform is the one that will meet your unique business needs, not only today but in the near future as well. Make a researched choice from among shared and Dedicated Server hosting options, and between cloud and physical servers.

High performance hosting will greatly add value to your business.

How Can ECommerce Leverage Benefits Of Cloud

E-Commerce and Cloud Computing are the latest buzzwords in the IT industry today. The notions are gaining popularity due to the cost benefits they offer. Organizations can save infrastructure costs by using cloud computing and e-commerce enables traders to do business without buying or renting out a shop. At the moment, many eCommerce companies are moving to the cloud as it provides optimistic opportunities to such firms.

What is Cloud?

Cloud computing as a network of computers creating a service-oriented architecture and facilitating an access to shared configurable resources that can be provisioned, scaled up or down, with minimal efforts. These resources can vary from networks, servers, to data storage, business critical applications and services.

Cloud Computing helps users to access and store programs and data over internet. According to Wikipedia, about 67% of the web users in India are using cloud computing services. Cloud computing encompasses a wide spectrum of technologies and configuration choices. It enables user to leverage benefits of hosted solutions. There are three components of cloud computing – application, storage, and connectivity. Each component performs a different function and offers multiple benefits for businesses across the globe.

Why migrate to the Cloud?

One of the major challenges faced by eCommerce pioneers is to plan huge website traffic spikes during busy periods. The company’s technical experts needs to ensure that its IT environment is capable of supporting hasty increase in database calls and website visits; besides providing a secured system to  new projects within the scrutinized budget. This is one of the significant reasons why cloud computing is a buzz among e-commerce businesses. It achieves such objectives without running applications in the company’s own environment.

Security: This is the most important barriers for the migration of eCommerce businesses to the cloud. Most of the companies have lately reported database and website hacking. This can be checked by moving to a safe and secured cloud-based environment. In cloud-based hosting, data and information is stored in a concentrated way. This reduces the chances of data theft and leakage. In addition, monitoring the data is relatively easier on the cloud as it is stored in the data centers.

Supply Chain Management: Supply chain management is considered as an important part of a business. Maintaining healthy horizontal and vertical relations with associates across the supply chain is critical for business sustainability. Small sized and middle sized e-businesses are mostly hindered by the capital, lack of technical support, and decision making abilities. This hinders their performance across the entire value chain network. Cloud computing provides these businesses a decision making business model on a BI level. This facilitates companies to leverage from the structured data and information. Also, data center facility provided by the cloud computing firms offer better infrastructure to e-businesses to develop business intelligence.

Scalability: It is extremely crucial for eCommerce retailers to scale their abilities according to the business requirements. The businesses may need to cut bandwidths during slower period, while increasing it during peak periods. Moving to cloud resolves this issue too. Cloud-based hosting provides flexibility to organizations to scale their business operations, according to the traffic spikes.

Network Downtime: Cloud hosting guarantees 99.99% network uptime, which is essential for eCommerce businesses as their business is highly affected by even one minute of network downtime.

In a nutshell, the advantages of cloud computing are evidently visible in the e-commerce business. By moving to a cloud hosting platform, an eCommerce site can optimize its business by ensuring guaranteed uptime availability of its website. Moreover, variations in product prices as well as upselling and cross selling improvements can be completed in real time to address changing market dynamics of a company.