CBIC looks for public feedback to check GST avoidance by e-tailers

Before considering Customs laws, the Central Board of Indirect Taxes and Customs (CBIC) is looking for public input on checking duty and GST evasion allegedly by ecommerce companies situated outside the nation.

The CBIC is searching for tech-empowered solutions to guarantee duties are paid effectively and to make imports through express messenger consistent, as indicated by custom authorities and others in the know of the matter.

The arrangement should enable clients to get deliveries quicker and free up from red tape those courier services and abroad ecommerce business firms that are happy to do business legitimately, an authority said on the state of anonymity. “We’re available to suggestions, including changing laws to present a flat rate of duty and GST for courier imports, yet the system should be consistent,” said a senior Customs official.

The CBIC has asked community platform LocalCircles to gather the input. In fact, there were 340 remarks from people and other community individuals in response to a blog post by LocalCircles on the issue. The proposals included compulsory registration of all overseas ecommerce substances in India and information captured at single source inside the CBIC. A flat rate on imports through express courier and denying overseas ecommerce business transactions from being named as B2B transactions through local partners, were different recommendations.

The government has effectively looked for suggestions internally on how to curb duty avoidance, another senior Customs authority told ET. A system to deduct customs duty and GST when consumers pay could be one solution to stop avoidance, he said.

The government has taken action against ecommerce business imports named as duty free ‘gifts and samples’. It has blocked clearance of every single such parcels at express courier ports in Mumbai, Delhi and Bengaluru. After the move, these ports have seen an intense decrease in the number of incoming gifts, yet other ports keep on clearing such gifts.

Our strategies for duty avoidance, as well, have been flagged.

In June, customs authorities in Mumbai seized more than 500 huge consignments of Chinese ecommerce firm Shein and sealed a distribution center of its Indian reseller Sino India Etail for underestimating goods imported through the low-value(under Rs 1 lakh) consignment route. Sino India Etail was only one of a dozen or so firms against which action had been taken. The company fits in with local laws and pays taxes correctly and on time, it said already.

Imports already make up around 7-8% of India’s overall ecommerce market by worth and are growing quicker than the general market pace, an expert following the ecommerce business segment at one of the Big Four consulting company said.

Despite the fact that Amazon.com is a sizeable player in ecommerce business imports, a critical bit of such imports is by Chinese ecommerce based business firms that purposely evade taxes and duties.

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Certicom Consulting [ Kedia Arpana & Co ] is a group of Chartered Accountants in the business of Small Business Setup & Statutory Compliance including for Professionals for the past 15 years. We have been an established and popular company with an excellent track record for the best customer satisfaction.

Certicom Consulting

Certicom Consulting [ Kedia Arpana & Co ] is a group of Chartered Accountants in the business of Small Business Setup & Statutory Compliance including for Professionals for the past 15 years. We have been an established and popular company with an excellent track record for the best customer satisfaction.