According to a report, E-commerce giant Flipkart has come under the scanner of tax authorities for allegedly restructuring its billing system to reduce its GST liability.
The Directorate General of Goods and Services Tax Intelligence (DGGI) has initiated a preliminary investigation into the Walmart-owned marketplace. Officials cited in the report claim that Flipkart allegedly classified marketplace fees as transport charges, which attract a lower GST rate compared to the standard 18% levy applicable on e-commerce activities such as listing, commission from vendors, payments and connecting buyers with sellers.
The matter reportedly came into focus after a Madras High Court advocate submitted a complaint to the Union Finance Minister, flagging Flipkart's billing practices. Once investigators gather sufficient evidence, the e-commerce company is expected to receive a show-cause notice from the DGGI.
This development comes amid an internal leadership reshuffle at Flipkart. If confirmed, the probe could add to the growing scrutiny faced by large digital platforms over their tax compliance and reporting structures in India.
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