A proposed tax structure that would exempt Walmart-owned ecommerce marketplace Flipkart's delivery charges from the goods and services tax (GST) has been struck down by the West Bengal Appellate Authority for Advance Ruling (WBAAAR). This could have implications for how ecommerce platforms classify and tax their logistics operations.
Flipkart India Pvt Ltd, an entity of the Bengaluru-based company, had sought to position itself as a goods transport agency (GTA) — a classification that carries a GST exemption when services are provided to individuals not registered under the indirect tax regime.
