The Confederation of All India Traders (CAIT) has informed the Ministry of Finance that e-commerce firms are causing a large loss in goods and services tax revenue during the festive season by flouting regulations.
CAIT asked the government on Friday to ban upcoming festive sales on Amazon's local unit and its rival Flipkart, saying their deep discounts violate the country's foreign investment rules for online retail.
H&M is seeing its India sales increase with a reported 39% year-on-year jump to Rs 380 crore ($57 million) in the previous quarter. The business hopes for greater ease of doing business to aid its future expansion plans.
Amazon India has shifted its focus from vendors in which it owns a stake to a group of medium-sized sellers, as it works with the current FDI regulations and the business eyes $15-$16 billion in India sales in 2020.
Paytm’s multi-brand e-commerce platform Paytm Mall has decided to shut down its warehouses and adopt a local logistics model to reduce costs and strengthen compliance to foreign direct investment norms.
Amazon is optimistic for the Indian market in the face of increased international losses and stricter foreign direct investment regulations in India as it hopes to work with the government to seek a stable policy.
The e-commerce business Flipkart is considering shutting down its wholesale operations in part as a response to foreign direct investment regulations that have necessitated a change of business practices at the firm.