Flipkart, Amazon face tax audit over GST refunds
The GST anti-profiteering authority has ordered audit of major e-commerce firms, including Flipkart and Amazon, to find out whether they have refunded excess GST collected from consumers
New Delhi: The GST anti-profiteering authority has ordered audit of major e-commerce firms, including Flipkart and Amazon India, to find out whether they have refunded the excess goods and services tax (GST) collected from the consumers. According to the order passed by the national anti-profiteering authority in the Flipkart case, the director general of audit of the Central Board of Indirect Taxes and Customs (CBIC) will audit all major online retail companies and submit its findings to the authority.
The problem surfaced because the GST rate was higher when orders were placed and lower by the time delivery was made to consumers.
In its ruling in the Flipkart case, the authority said it was “conscious of the fact that there may be several such cases in which the e-platforms had collected excess GST from buyers and have not refunded the same after the tax was reduced on various products on November 15, 2017”.
Following this, the anti-profiteering authority has “directed the Director General of Audit, CBIC, to audit the major e-platforms and submit findings to the authority”.
The authority, however, dismissed the application alleging profiteering by Flipkart filed by an individual after the e-commerce firm assured it that it had initiated the process of refund of excess duty paid at the time of booking.
Federal body GST Council had reduced tax rates on over 200 items of daily use like chocolates, waffles, furniture, wrist watches, cutlery and ceramic tiles, with effect from 15 November 2017.
The GST anti-profiteering authority was set up last year to ensure consumers received the benefit of tax rate reductions after the rollout of the indirect tax on 1 July 2017.