Same was being witnessed in IT products as National Distributors / Tier-1 and Tier-2 level partners were at stock clearance levels. Tier-2 partners were vary of this and to avoid any taxation hassles preferred to go low on stocks and rather preferred back-to-back mode of selling. Tier-3 / Retailers / Resellers also had stocks but they were confident of ways of pushing the boxes ‘avoiding’ GST regime even once it comes to force.

Once GST got implemented it automatically gave a solution to the channels.  The territory of business widened for large scale partners who could now sell in a larger geography as GST is a destination based taxation method.

In between, the channels had a difficult phase primarily due to understanding of the new tax rules and their implications on their businesses.

Now as the business is steadily getting usual channel ecosystem is understanding the benefits of the GST regime. While it brings transparency in the taxation and also opens up newer opportunities; for instance, expansion of geo-territory of operations, the channel partners have understood that it was a onetime pain for a long term gain.