CAIT to CMs: States losing revenue, frame rules for e-tailers

Alleging that states are losing revenue due to online retail business, traders body CAIT has asked Chief Ministers to frame rules and regulations for e-tailers.
In a letter to Chief Ministers, the Confederation of All India Traders (CAIT) has alleged that online retail business reflects abuse of dominance, predatory pricing, avoidance of tax liabilities, dubious funding structure and unhealthy business practices.
In many cases, they have contravened FDI policy of the central government, it alleged.
"We invite your kind attention to online retail business in the country through which the state governments all over the country are suffering significant revenue loss on account of consumption of goods in respective states purchased through online retail platform," the letter said.

It said that brick and mortar shops are subject to various acts, laws, rules and regulations whereas the online retail business do not have any specified rules and regulations "which provide them more advantage to play business as per their own will and wishes".
"It is unfortunate that present style of functioning of online retailers being non-transparent in nature debar either Union Government or State Governments to keep a check on their business module," it said.
It further said that online retailers are registered with tax department of one state only and are making deliveries across the country through either their logistic support or courier services.

It is a serious anomaly which needs to be investigated and need appropriate actions and steps from the government, it said, adding that online retailers are selling goods at much lower prices under the guise of consumer benefit.