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CAIT seeks probe in business model of Amazon, Flipkart

Published
today Oct 29, 2019
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Indian traders body, the Confederation of All India Traders (CAIT), has asked the government to conduct an inquiry on the business model of e-commerce firms Amazon and Flipkart.
 

CAIT seeks probe in business model of Amazon, Flipkart - Flipkart


CAIT in its letter to the finance minister Nirmala Sitharaman has alleged that the above e-tailer have been offering deep discounts on products resulting in loss of GST revenue to state and central exchequers.
 
CAIT has alleged that Flipkart and Amazon are selling goods on their platform much below their market value which violates the GST act and also hurting the businesses of traders.

In the letter, CAIT secretary general Praveen Khandelwal has urged the Finance Minister, “to institute a probe into this business model which is causing huge GST revenue losses to the government and recover the difference of GST between billed price and market value from the period of implementation of GST.”
 
CAIT has been vocal about business practices of foreign e-commerce firms in India and feels that the above businesses are hurting the country’s domestic traders.
 
The CAIT has made several representations to different ministries requesting the government to prioritise the country’s seven crore traders over foreign-owned big businesses like Amazon and Walmart.

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