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Flipkart faces GST probe over billing issues
Flipkart is being investigated by the Directorate General of Goods and Services Tax Intelligence (DGGI) for possibly labeling its marketplace fees as transport charges, which usually get taxed less.
This move came under the spotlight after a Madras High Court advocate raised questions with the finance minister about how Flipkart handles its billing.
Key takeaways from the investigation
Normally, marketplace services are taxed at 18%, but transport services get a lower rate.
If Flipkart is found to have done this on purpose, it could face penalties and have to pay back taxes.
Other e-commerce platforms stick to standard GST rates, so this probe highlights why accurate billing really matters under GST rules.