Calcutta HC will hear on Nov 16 Flipkart India’s challenge to a ruling on the GST treatment of its logistics services in a dispute involving an estimated tax liability of about Rs 500 crore.
The case concerns whether transportation charges collected by Flipkart from individual customers qualify as exempt goods transport agency (GTA) services under GST law, according to legal experts familiar with the matter.
Flipkart had restructured its logistics operations and argued that the transportation charges were for GTA services and therefore exempt from GST.
The advance ruling appellate authority initially ruled in Flipkart’s favour in June. The revenue department subsequently challenged the ruling, and the authority overturned its earlier decision, holding that the arrangement was in substance a courier and logistics fulfilment service rather than an exempt GTA service.
Flipkart challenged the appellate authority’s decision in the HC in Aug.
A single-judge bench of Justice Smita Das is hearing the matter. Senior Supreme Court advocate appeared for Flipkart on Thursday. The state was represented by advocate general along with advocates.
The dispute could have implications for the GST treatment of logistics arrangements used by e-commerce companies, experts said.
Source from: https://timesofindia.indiatimes.com/articleshowprint/134014443.cms
