CAIT Appeals 28% GST on Quick Commerce, E-commerce to Achieve Level Playing Ground for Small Traders

CAIT has urged the government to make a 28% Goods and Services Tax (GST) obligatory on quick commerce and e-commerce platforms. It is based on the fear about the effect on small traders if these platforms take over the whole market and by imposing regulatory reforms to promote equality in competition. Here's the detailed report:

Key Highlights
Luxury Tax Proposal:

CAIT has suggested to treat quick commerce and e-commerce services as luxuries at par, and they should be taxed at 28% GST.

The body of traders believes that this taxation would ensure a level-playing field for brick and mortar retailers and online platforms.

Impact on Small Traders:

CAIT blames e-commerce players for violating regulations, selling pirated goods, and destabilizing small businesses by deep discounting and expansion-at-all-costs.

The uncontrolled expansion of quick commerce platforms has been reportedly responsible for the shutdown of many small retail outlets.

Regulatory Needs:

The traders' association has called for the government to implement the long-awaited National e-Commerce Policy and Consumer Protection Act and Foreign Direct Investment (FDI) policy rules.

CAIT also calls for the formation of an independent digital commerce regulatory body to make the sector transparent and accountable.

GST Structure Review:

CAIT has advocated for a thorough review and streamlining of the structure of GST so that the tax base can be widened and the tax slabs can be rationalized.

The traders' organization points towards a business-friendly system favorable to small and medium businesses.

Geopolitical Context:

Apart from its GST demands, CAIT has passed a resolution denouncing trade with Pakistan, calling for an outright boycott of imports and exports with the neighboring nation.

Future Outlook:

CAIT will submit exhaustive suggestions to the Ministry of Commerce and Consumer Affairs to deal with the challenges arising from rapid commerce and online commerce platforms.

The traders' association continues to be committed to safeguarding the interests of small enterprises and ensuring fair competition.

This disclosure points to the escalating fears of brick-and-mortar retailers regarding the disruptive nature of digital commerce and the necessity for the intervention of regulatory bodies in ensuring a well-balanced marketplace.

Sources: Business World, Business Today, Outlook Money
 

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