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Thanks to GST: Buying iPhones online loses its charm, no heavy discounts

New Delhi: The scene after GST has changed for iPhone buyers from e-retailers. There used to be a difference of Rs 5000-8000 in online and offline prices of iPhones previously, the same is not the case after the implementation of goods and services tax (GST).

So, if you buy an iPhone online now, they can give you a discount from Rs 1500 to Rs 2000, which is possible as Apple distributors had supplied the products to online sellers from states that had a low value added tax (VAT). Now when the VAT has merged into a uniform GST rate, tax arbitrage that VAT offered can’t be used by the retailers, as per Business Insider.

The discount provided by the online sellers would be the amount they’ll save in distribution cost, who are now adopting to a uniform margin across all e-commerce platforms with no big price difference.

The fall in the discount pricing will speed up the selling of iPhones offline. This may lead to an increase in the number of authorised resellers up to 350-400 which is currently 200.