Flipkart, a Bangalore-based electronic commerce portal, is all set to begin the sales of reconditioned smartphones in Diwali this year, as part of a move intended for managing high return rates of handsets. According to reports, Flipkart’s decision of engaging in smartphone re-commerce comes after the company lost its price advantage following the implementation of GST.

The Indian e-commerce is said to have a huge inventory of returned smartphones, many of which have little to no damage at all. In order to make these handsets worth purchasing, Flipkart will have them checked and make them part of Flipkart-certified refurbished devices to be sold on the online marketplace and offline outlets. These smartphones will have a limited warranty, will be categorized into three groups, and will be offered at 60% to 70% of their original pricing.