E-commerce giant Flipkart is under a preliminary probe by tax authorities for allegedly changing the billing structure to claim lower goods and services tax liability, a report by Mint said on August 28.
According to the report, the Walmart-owned online marketplace showed marketplace fees as transport charges for lower GST rates. The due diligence is being carried out by the Directorate General of Goods and Services Tax Intelligence (DGGI), the report said citing officials.
The e-commerce firm will be sent a show-cause notice once the investigators have all the evidences, the report said.
Moneycontrol could not independently verify the report.
The case came under the spotlight after a Madras High Court advocate wrote a complaint to the Union finance minister Flipkart’s alleged billing practices.
Usual marketplace activities that include connecting buyers and sellers, commissions from vendors, listings and payments attract 18 percent of GST, the paper said.
Meanwhile, Moneycontrol had reported on August 27 that the company’s senior vice president Bharath Reddy will be moved to a bigger role in Walmart’s global technology team.
