The anti-profiteering authority has ordered audit of major e-commerce companies like Flipkart, Amazon and Snapdeal, to find out whether they have refunded the excess GST collected from the consumers.
The anti-profiteering authority has ordered audit of major e-commerce companies like Flipkart, Amazon and Snapdeal, to find out whether they have refunded the excess GST collected from the consumers. As per 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 conduct audit of all major e-platform companies and submit its findings to the authority.
The problem surfaced as the GST rate was higher when the order was placed and was subsequently reduced when the delivery of product was made to the consumer. In its ruling in the Flipkart case, the authority said it is “conscious of the fact that there may be several such cases in which the e-platforms had collected excess GST from the 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 assured that it has initiated the process of refund of excess duty paid at the time of booking.
The GST Council, chaired by Union Finance Minister, had reduced tax rates on over 200 daily use items like chocolates, waffles, furniture, wrist watch, cutlery items, suitcase and ceramic tiles, with effect from November 15, last year. The anti-profiteering authority was set up last year to ensure that consumers get the benefit of tax rate reduction post the roll out of Goods and Services Tax (GST) from July 1, 2017.