Urging government to probe the business model of e-commerce majors, the Confederation of All India Traders (CAIT) has said that deep discounts on products by them are causing loss of Goods and Services Tax (GST) revenue to the Centre and state governments.
The traders’ body in its a letter to Union Finance Minister Nirmala Sitharaman claimed that e-commerce companies Amazon and Flipkart and others were selling goods much below their market value thus denying the Government of its due legitimate GST revenue.
Besides, CAIT noted that under GST Act, the government has a power to determine actual market value of the products if it appears that it is under billed. Meanwhile, CAIT sent similar letters to Union Commerce Minister Piyush Goyal and finance ministers of all states.