A new online retail law is expected to go into effect in 2019.
Under the scheme, online retailers will be required to set up shop and collect data for government authorities and the tax authorities on behalf of consumers, such as sales tax.
While the scheme has been in the making for a while, the latest data from the Centre for Monitoring of Payments and Receipts (CMPR) shows the new data collection mechanism is the most important aspect.
According to the CMPR, in a survey conducted in October last year, almost 90 per cent of respondents said they expect the government to collect data from online retailers on the basis of the existing data collection rules.
As per CMPR data, in the last five years, the number of online shops in India has increased from 1,634 to 2,812, while the number collecting data for the tax department increased from 3,722 to 5,621.
Online shopping is an increasingly popular option for the Indian economy, as the country’s consumer base has grown significantly in the past five years.
In terms of revenue, the retail sector is the biggest earner in India, accounting for a whopping $10.6 trillion.
Online shopping has become a huge success story for the government, with retailers generating revenue of around $6 billion a year.
The retail sector has been witnessing a massive transformation in recent years.
While the sector has seen a significant reduction in its cost of production and its dependence on imported goods, it is not a big revenue-generator for the country.
While retail revenue from online stores has grown over the last decade, this is not due to the introduction of new products.
The new online retailer law will also have major implications for the way online retailers operate.
According the Centre, the new online store will be a new market for retailers and would give them an additional opportunity to grow their business.
With the introduction and regulation of online retail, the online retail sector will have to become more innovative and better suited for the digital age.