The Prevention of Inquiry Authority has ordered the audit of major companies of the e-commerce sector, Flipkart, Amazon and Snapdeal. Through audit, it will be ascertained whether these companies have returned the additional goods and service tax (GST) collected by the consumers. As per the order of the petition filed by the National Profit Prohibition Authority in Flipkart, the Director General of Audit and Customs Board (CBIC) will conduct audit of all major e-platform companies and report it to the Authority.
This problem arose because when the order was given, the GST rate was high at that time, whereas consumers had reduced the GST rate at the time of delivery. While giving its order in Flipkart case, the authority said that there may be many such cases, whereas the e-platform has taken more GST than the consumers and later it has not been returned if the tax rate is low. On November 15, 2017, GST rates were reduced from many products. In view of this, Profit Prohibition Authority has directed the Director General Audit and the CBI to audit major e-commerce companies and submit its report.
However, the Authority dismissed the complaint regarding making a profit against Flipkart. One person filed this complaint. The e-commerce company has assured that it has started the process of returning the additional GST to the concerned person at the time of booking, after which the appeal against Flipkart was dismissed.
The GST Council, headed by the Union Finance Minister, had reduced the GST rate on nearly 200 products of everyday use from November 15 last year. These include chocolates, furniture, hand watches, cutlery products, suitcases and ceramic tiles.
This problem arose because when the order was given, the GST rate was high at that time, whereas consumers had reduced the GST rate at the time of delivery. While giving its order in Flipkart case, the authority said that there may be many such cases, whereas the e-platform has taken more GST than the consumers and later it has not been returned if the tax rate is low. On November 15, 2017, GST rates were reduced from many products. In view of this, Profit Prohibition Authority has directed the Director General Audit and the CBI to audit major e-commerce companies and submit its report.
However, the Authority dismissed the complaint regarding making a profit against Flipkart. One person filed this complaint. The e-commerce company has assured that it has started the process of returning the additional GST to the concerned person at the time of booking, after which the appeal against Flipkart was dismissed.
The GST Council, headed by the Union Finance Minister, had reduced the GST rate on nearly 200 products of everyday use from November 15 last year. These include chocolates, furniture, hand watches, cutlery products, suitcases and ceramic tiles.
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