The Traders’ body on November 25, 2019, in a letter to the Finance Minister, appealed to initiate a high-level enquiry to probe the alleged avoidance of due tax liability by ecommerce majors such as Amazon and Flipkart.

Notably, CAIT has been alleging that these ecommerce companies are involved in unethical business practices such as deep discounting, predatory pricing, violation of FDI norms, tax evasion, among others.

CAIT has also alleged that both Amazon and Flipkart have designed their business model based on highly predatory pricing and deep discounting and charging goods and service tax (GST) on artificially lowered price.

“Although as per GST law, they cannot undervalue the price of any commodity and under a statutory obligation to charge GST on actual market value,” CAIT wrote in the letter.

“In this way, instead of charging GST on the actual price they are actually charging it on much-lowered price and hence causing huge revenue loss to both the central and state government,” CAIT said in its letter. | To read full story, visit https://startuparound.com/read/1574654406.6809406/Amazon,-Flipkart-Evading-GST:-CAIT-Explains-To-Finance-Minister?ref=audio_experience