E-commerce consumers are likely to remain unaffected once goods and services tax (GST) sets in from July 1 even as players like Flipkart and Amazon prepare to deduct 1% of the payment it makes to sellers under the new tax regime.

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While the move is not expected to impact consumers directly, it is expected to bring more transparency as the tax collection system gets more streamlined, experts said.

Revenue Secretary Hashmukh Adhia on Friday announced that e-commerce players like Flipkart and Snapdeal will have to deduct 1% tax collected at source (TCS) while making payments to suppliers.

"We believe GST is good for the e-commerce industry as it would eliminate hurdles in inter-state delivery and subsume the entry tax introduced on e-commerce shipments by some states," an Amazon India spokesperson said.

The US-based firm, which competes with Flipkart, said it is studying the developments very closely and is working on enabling its seller ecosystem to be compliant with GST regulations.

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"As always, we will work customer backwards to ensure they are not inconvenienced," the spokesperson said.

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