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Ecomm sellers, brands face working capital strain - The Economic Times

Economic Times · 20h ago

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Ecommerce sellers, especially in categories like apparel and handicrafts, face short-term cash crunches due to higher input taxes paid on unsold stock prior to GST rate cuts. With the new lower GST rates, sellers cannot pass on previous costs, blocking working capital and reducing margins before festive sales. Despite the temporary nature of this challenge, sellers hope for strong sales in upcoming quarters to offset losses, while platforms like Amazon and Flipkart facilitate the transition to new GST rates.