A 28% GST on e-commerce and quick commerce deliveries has been demanded by the Confederation of All India Traders (CAIT), which contends that these services are luxuries and ought to be taxed as such.

At the CAIT’s National Governing Council meeting, which was attended by more than 200 trade leaders from 26 states and took place in Bhubaneswar on April 25–26, this demand was one of several resolutions passed.

28% GST on e-Commerce and Quick Commerce Deliveries Demanded By CAIT

E-commerce and quick commerce platforms have been accused by CAIT of breaking the law repeatedly, selling fake goods, and attempting to shut down small traders’ businesses.

The group called for rigorous enforcement of the Consumer Protection Act and FDI regulations, as well as the prompt implementation of the long-delayed National e-Commerce Policy.

Citing the current geopolitical climate, CAIT also called for an end to all trade with Pakistan.

In order to support business growth, the traders urged the government and GST Council to undertake a thorough review of the GST structure, highlighting the necessity of expanding the tax base, streamlining compliance, and rationalizing tax slabs.

CAIT issued a warning earlier in the week that small offline traders had been negatively impacted by the unchecked growth of e-commerce and quick commerce.

Dhairyasheel Patil, AICPDF National President and CAIT Senior VP, said, “Quick commerce has now expanded to 100 cities. In metro cities, 70 per cent of the retailers are using rented shops. Till now 10 lakh shops have been shut as per our estimates in the last two-three years.”

Patil added, “Though new shops have also opened, the number of new shops that have opened is less as compared to the number of small retail stores that have shut down due to lack of affordability and viability of operations.”

CAIT Asks For Independent Regulatory Body For Digital Commerce

In order to guarantee accountability, openness, and fair competition, CAIT also called for the establishment of an independent regulatory body for digital commerce.

To avoid monopolistic behavior, they demanded that the technology, pricing algorithms, and vendor selection of e-commerce platforms be made transparent.

Praveen Khandelwal, CAIT Secretary General and MP from Chandni Chowk, declared, “In the current circumstances, the business community across the country stands united and ready under the leadership of Prime Minister Narendra Modi to take any necessary step for protecting the sovereignty and commercial freedom of the nation.”

As a breach of FDI norms, CAIT reaffirmed its opposition to inventory-led models used by e-commerce companies masquerading as marketplaces.

The national campaign to safeguard India’s retail industry will launch on May 1st, according to CAIT National President B C Bhartia, “We will not remain silent. Local trade associations in every city and state will rise to defend India’s retail democracy.”

The forthcoming campaign and these new demands are a reflection of the growing discontent among traditional Indian traders, who hold e-commerce behemoths accountable for unfair business practices, steep discounts, and the demise of small retailers.