CAIT Writes to PM, Raises Concerns about GST, Violation of e-Commerce Rules by e-Tailers

Trader’s body CAIT wrote to PM Narendra Modi ahead of its ‘Bharat Bandh’ call on February 26. It raises issues related to the GST regime, and alleging violation of e-Commerce rules by major e-tailers.

As per PTI, in its letter to the PM, the Confederation of All India Traders (CAIT) called for setting up of a special working group at the central level comprising senior officials, CAIT representatives and independent tax experts to review the GST structure and make recommendations to the government.

CAIT also suggested that a ‘District GST working Group’ be constituted in each district to monitor smooth GST implementation and to take steps for widening of tax base and augmentation of revenue.

It also said in the letter that a few recent amendments in GST have given arbitrary and unfettered powers to the government officials, which goes against the PM’s mission of minimum government, maximum governance. CAIT also mentioned that these amendments have created a state of tax terrorism in the country.

The trader’s body said in the letter to the PM, ‘The principle of natural justice has been greatly violated through such amendments where the traders have been denied any sort of show-cause notice or opportunity of hearing before taking any penal action’.

CAIT also alleged that the domestic e-Commerce landscape has been greatly vitiated by some major e-Commerce companies who are continuously and openly violating the FDI policy, law and rules without any fear of law. It also averred that they are indulging in predatory pricing, deep discounting, loss funding, controlling inventory and sale of branded products.

It said, “These e-Commerce companies have found various escape routes in Press Note No.2 of the FDI policy and therefore, a fresh Press Note blocking all escape routes and abolishing all such provisions that may prompt these companies in violate the rules or policies should be prepared”.

CAIT also called for setting up of a regulatory authority for the e-Commerce sector. Such authority should be empowered with due rights to take any penal action against those who violate the law or policy.

It also suggested that a robust e-Commerce policy should be formulated and released in a time-bound manner prescribing defined parameters for e-Commerce business in the country.