An Easy System of Implementing the Business for MSMEs
The Confederation of All India Traders (CAIT) inside the communication to chief ministers of all the states shown that the cause of the significant delay of the GST by the “big e-commerce companies by artificially reducing the prices of the goods sold at their e-commerce platform which is much lower than the actual market price of the goods.” CAIT seeks the union government for their assistance to execute the draft of e-commerce rules.
“so that the current e-commerce landscape of the country is liberated from the monopolistic cobweb of major e-commerce players both foreign-funded and indigenous e-commerce entities”.
The council has heightened up the charges concerning Amazon, and Flipkart for implementing unfair business practices like deep discounting, flouting FDI rules, preference to select sellers, etc
CAIT’s National President B.C.Bhartia and Secretary General Praveen Khandelwal in the joint statement urged that the states direct their corresponding GST council to carry out the “substantial investigation for selling the pattern of the e-commerce firms and for the following work. Selling the goods before the current market cost “is causing a huge loss of GST revenue to state and central government.
“These foreign-funded companies, under FDI in e-commerce policy, are authorized to do only Business to Business (B2B) activities whereas they are conducting Business to Consumers (B2C) sales activities right under the eyes and nose of the Government in complete violation of the policy of the government,”
This year, the government had furnished the changes to the draft e-commerce scheme and sought recommendations via industry. The council of consumer affairs has recommended that a restriction on sales through e-commerce entities, must be necessary for the registration of these things through the dept for Promotion of Industry and Internal Trade, and others out of the amended published to the draft scheme. It is recommended that the appointment of the chief compliance officer and a contact person for 24 hours coordination through the enforcement law agencies and the resident officer through the e-commerce firms.
“Bhartia and Khandelwal commented that In a case where a mobile’s actual sale price is Rs 10,000 rupees, the government is entitled to get GST at Rs 10,000. However, on portals of these companies, the same mobile is sold at a much lower rate, say Rs 6,000 by adopting predatory pricing and charging GST at Rs 6000 causing a huge GST revenue loss to both central and state governments,”
