📢 Industry Bodies Urge Govt to Impose Luxury Tax on E-commerce Goods Under GST
By Author / April 24, 2025
GST Recent News – 2025
🛒 E-commerce Platforms Under Scrutiny
Industry bodies have urged the government to impose a luxury tax under GST on purchases made through e-commerce platforms. They argue that major players like Amazon and Flipkart are manipulating markets, violating laws, and undermining small retailers.
According to the Chairman of the All India Mobile Retailers Association (AIMRA), these platforms have repeatedly exploited legal loopholes for over a decade. He emphasized how they bypass foreign direct investment (FDI) restrictions by using a network of group entities and preferred sellers.
“These companies dominate every layer of the supply chain while pushing Indian retailers aside,” he said at the national conclave on ‘Cruel Face of Quick Commerce and E-commerce’, held at the Constitution Club in New Delhi.
⚖️ Strong Demand for Regulatory Enforcement
Organizations like the Confederation of All India Traders (CAIT), All India Consumer Products Distributors Federation (AICPDF), Organised Retailers Association (ORA), and AIMRA have jointly called for urgent reforms. They are demanding:
- Strict enforcement of FDI and e-commerce policies
- Immediate rollout of e-commerce rules under the Consumer Protection Act
The Secretary General of CAIT criticized these platforms for algorithm-driven consumer manipulation and predatory pricing funded by FDI.
“FDI is not helping India’s retail economy. It’s financing losses to destroy small businesses and dominate the supply chain,” he said.
“This isn’t trade anymore—it’s a valuation race at the cost of small retailers.”
📅 Nationwide Campaign Launching May 1
CAIT’s National President announced a nationwide protest campaign starting May 1, 2025, against the unchecked rise of digital retail giants.
“We won’t stay silent. Traders across cities and states will unite to defend India’s retail democracy,” he declared.
A strategic roadmap for the campaign will be unveiled at CAIT’s National Governing Council Meeting in Bhubaneswar, April 25–26.
🚨 Concerns Over Quick Commerce Players
Platforms like Zepto, Blinkit, and Instamart have attracted over ₹54,000 crore in FDI. Yet, only 2.5% of that has gone into infrastructure, according to AICPDF’s President.
He accused these platforms of operating as inventory-led companies instead of open marketplaces.
“They’ve built closed ecosystems that exclude small traders and mislead consumers,” he warned.
📜 Policy Resolution and Regulatory Demands
The conclave concluded with a firm Policy Resolution that includes:
- A ban on inventory-led operations by platforms posing as marketplaces
- Formation of an independent regulatory authority for digital commerce
- Mandatory transparency in algorithms, pricing, and seller listings
- Active protection of small Kirana stores and local retail businesses
