Flipkart currently has more than 1 lakh sellers on its platform, most of whom are MSMEs. Hence, supporting them becomes critical for Flipkart to retain and attract more sellers.
E-commerce giant Flipkart has partnered with online tax filing portal Cleartax for its sellers to connect with chartered accountants for support around various tax and accounting related services. Flipkart currently has more than 1 lakh sellers on its platform, most of whom are MSMEs. Hence, supporting them becomes critical for Flipkart to retain and attract more sellers.
The tie-up comes less than three weeks after Flipkart had revamped its seller financing programme — Growth Capital that provides a loan of Rs 7 lakh on average up to Rs 3 crores at 9.5 per cent interest rate and disbursed in less than 48 hours of application. Flipkart had tied up with 10 lenders for the programme including SBI, Axis Bank, Tata Capital, SIDBI, LendkingKart etc.
Through support from CA, sellers would be able to seek support for registering business, filing income tax returns, knowing GST software for self-use, ROC compliance services, etc., Flipkart said in a statement adding that a GST Health Check report would allow sellers to get insights about GST for their business, knowing status for return filing, compares returns etc.
Flipkart intends to focus on a large base of “small sellers in non-metro markets overcome a significant hurdle,” said Nishant Gupta, Head of Marketplace, Flipkart.
Finance minister Nirmala Sitharaman in her budget speech on Friday had announced that “a simplified single monthly return is being rolled out while businesses with less than Rs 5 lakh annual turnover shall file quarterly return.”
The minister had also said that a free accounting software for return preparation is available to small businesses. Further, a fully automated GST refund system shall be implemented and various tax ledgers shall be replaced by one. Nirmala Sitharaman had also allocated Rs 350 crore, under the Internet Subvention Scheme for MSMEs, for the current financial year for 2 per cent interest subvention for GST-registered MSMEs on fresh or incremental loans.
E-commerce small businesses’ challenge of understanding and adopting GST easily is never easy to solve. Filing GST return form, according to the Confederation of All India Traders (CAIT), is extremely complicated with requirements that current GST filing softwares are not updated with.
“For example, the cost price of each commodity, the sale price of each commodity, and HSN code of each item are now asked by the government. These weren’t required when GST was introduced. Hence, GST filing softwares don’t have provision to fill these details,” Praveen Khandelwal, Secretary General, CAIT had told Financial Express Online.
Instead of letting that be a barrier to their business, “we are coming together with Flipkart to help entrepreneurs comply with GST using our technology and advanced automation,” said Archit Gupta, Founder & CEO, Cleartax.
Flipkart currently has more than 150 million registered customers and over 80 million products across more than 80 categories.