CAIT fears e-comm platforms are flouting GST regulations in festive sale season

By

Isabelle Crossley

Published
Sep 30, 2019

The Confederation of All India Traders (CAIT) has informed the Ministry of Finance that e-commerce businesses are causing a large loss in goods and services tax revenue during the festive season by flouting regulations.

The CAIT contacted the Minister of Finance Nirmala Sitharaman on September 29 to allege that some of the largest e-commerce firms operating in India are causing the government a loss in revenue by levying GST on the sale price of items instead of on the market price, the Press Trust of India reported.

As large e-commerce businesses can offer up to 80% discounts during the festive sale season, the difference in GST on the sale and retail price would be very different. 

"It's irony that if a trader makes even a slight mistake during the course of his business, he is subjected to several penalties and even prosecution,” said the CAIT’s statement, as reported by the Press Trust of India. “However, these e-commerce companies, which are authorised to do only business-to-business activities, are conducting business-to-consumers sales right under the eyes and nose of the government and no action has been taken so far against them for such a blatant violation of FDI [foreign direct investment] Policy.” 

The CAIT represents traders across India and has consistently lobbied for creating a fair playing field in e-commerce, on the belief that foreign-owned giants have a monopoly on the market. The CAIT urged Sitharaman to investigate the matter and has accused large e-commerce firms of “predatory pricing” this festive sale season.