Flipkart under the lens for alleged GST billing tweaks

Flipkart is under preliminary investigation over allegations that the Walmart-owned online marketplace altered its billing structure to reduce its goods and services tax (GST) liability, two tax investigators said.

- Sakshi Sadashiv

Flipkart allegedly rejigged its billing model by recasting marketplace fees collected from its vendors as transport charges to claim lower GST rates applicable to goods transport agencies by shifting revenue to a category ‘meant for small road transporters. The Directorate General of Goods and Services Tax Intelligence (DGGI) is conducting due diligence into complaints against Flipkart, officials said.