Flipkart's courier rate card hits seller margin

Sellers say revised GTA charges inflate costs compared with courier rates

- Sakshi [e-mail]

The restructuring uses a small-transporter GST rule, boosting Flipkart's reported toplines while reducing sellers' revenues.

(MINT)

Flipkart has updated its Goods Transport Agency (GTA) rate card,achange that isweighing on brand toplines. Mint has reviewed acopy of the revised rates.

Flipkart-Myntra’s restructuring pushes logistics costs onto sellers, squeezing already thin margins. Many sellers told Mint that Flipkart isunfairly using small-transporter goods and services tax (GST) rule to boost its own profitsand cut theirs, which explains why the sales figures vary.

Goods Transport Agency refers to businesses that move goods by road and issue a consignment note. Under GST rules, freight billed bya GTA can be subject toa lower or even exempt tax rate.