New Delhi: Festival Sale can be banned from e-commerce companies like Amazon and Flipkart. In fact, the Competition Commission of India (CCI) has approached the Supreme Court against the Karnataka High Court’s interim stay on the investigation against Flipkart and Amazon. The Karnataka High Court, on a petition by the Delhi Trade Federation, had given a decision to put an interim stay on the CCI’s investigation against the two e-commerce companies. Now the trade organization Confederation of All India Traders (CAIT) has justified the petition of CCI claiming that both these e-commerce companies are doing arbitrary business.
CAIT claims e-commerce companies sell goods below cost
Merchant organization CAIT claims that Amazon and Flipkart have been trading arbitrarily for a long time. These two companies sell goods at a price less than the cost. Not only this, e-commerce companies do unethical business like huge discounts, control of inventory of products and special arrangement with brands. CAIT’s National General Secretary Praveen Khandelwal said that the festival sale of Amazon and Flipkart should be banned. He said that for this he will appeal to the Central Government.
CAIT’s charge, e-commerce companies are cheating the government on GST
CAIT has demanded from the Central Government that a Regulatory Authority should be created to regulate and monitor the e-commerce business in India. Apart from this, the Center should also formulate an effective e-commerce policy so that if a company violates FDI rules, they can be asked to leave India. CAIT had alleged last month that e-commerce companies were defrauding the government of Goods and Services Tax (GST) through the festive season sale.
CAIT writes many questions to Finance Minister Nirmala Sitharaman
In a letter sent to Finance Minister Nirmala Sitharaman, Kat had said that a low GST is being imposed during the sale of the festival sale started by many e-commerce companies like Amazon and Flipkart. The government is losing GST due to this. Kat had said that if a businessman makes a small mistake in his business, then the action is taken on him. At the same time, e-commerce companies authorized for business to business (B2B) activities are selling directly to consumers (B2C). No action has been taken against them for this so far.
