1500% Rise In Ecommerce Complaints; GST Body Says Flipkart Did No Wrong In Taxation!

GST Body which investigated anti-profiteering allegations against Flipkart has said that they are clean, and they did nothing wrong.

All through the day, speculations were rife that Flipkart has failed to pass the benefits of GST cuts to the end-users, thereby violating anti-profiteering laws.

In a related news, Govt. has informed that complaints against ecommerce portals have increased by whooping 1400% in the last 4 years.

Where does the buck stop?

GST Body: Flipkart Is Clean!

Rishi Gupta from Chennai had complained to GST Body that Flipkart has failed to give GST cut advantage to the end-user, hence they should be booked under the strict anti-profiteering rules of the nation.

After investigating the case, National Anti-Profiteering Authority (NAA) has dismissed the case, as they passed an order: “The allegation of profiteering made by the applicant against the respondent as well as the supplier is not established and hence the application is not maintainable and the same is accordingly dismissed,”

The rules formed by NAA are very strict, and if they find that a business is resorting to mal-practices, pertaining to GST laws, then that business can be shut down.

The case was related to GST rate cut announced in the month of January, 2018. Today we had reported another massive round of GST rate cut on several items, including sanitary pads.

However, there are strong reports that anti-profiteering authority is conducting tax-audits for major ecommerce portals such as Flipkart, Amazon, Myntra and others.

1500% Rise in Ecommerce Complaints!

Meanwhile in a related news, it has come to light that consumer complaints against ecommerce portals has risen by 1500% in the last 4 years.

The data is coming straight from the Consumer Affairs ministry.

Compared to 5204 ecommerce complaints in 2013-14, there were whooping 78,000 complaints lodged in 2017, which is an increase of 1500% in the last 4 years.

Two major types of complaints which hogged limelight in the database of the Ministry are:

 

• Money not refunded (22% of all complaints)

 

This is the most common form of complaint lodged by online shoppers: Money is deducted from the bank account, but the product is not delivered; or the product is returned, but money is not refunded. Since three parties are involved here: ecommerce portal, bank and the user, resolution typically takes time.

 

• Promised product not delivered (17% of all complaints)

 

Delivering defective products are the 2nd most popular form of complaints received by the Ministry.

Other prominent complaints which are noticed are: no after-sales support; different product delivered; non-delivery of products and more.

Consumer Protection Bill, 2018 has already tabled in the Parliament, and if approved by the Lok Sabha, a special Central Consumer Protection Authority (CCPA) will be formed to look into every form of consumer complaints, including those of fake advertisements.

This will hopefully cover offline and online shopping, both.

We will keep you updated as receive more inputs.