SME retailers demand liberal policy for e-comm sector

Small and medium sized retailers selling products on e-commerce platforms have asked the government to form a liberal policy for the online retailing sector and treat their virtual shops as technology platform. In a letter to Commerce and Industry Minister Nirmala Sitharaman, industry body Ecommerce Coalition has said, "The creation of any definition of Ecommerce should take into consideration that this is a technology platform, which acts as a bridge between sellers and their consumers. The platform does not conduct trading itself." "Ecommerce has the potential to power our economy through growth of enterprise, infrastructure and employment and it must be helped, enabled and liberalised to achieve its potential," Ecommerce Coalition Secretary Aamir Jariwala told PTI while sharing details of the submission.

The coalition raised issue of additional tax being levied on ecommerce deliveries in some states and demanded quick implementation of GST across the country. "In the interim before the formal implementation of GST, request for the government to issue a notification for status quo that reduces the harassment faced by ecommerce players on VAT and other taxes," the letter said. The coalition recommended government to allow India ecommerce firms to access foreign capital.

"The ecommerce sector in its entirety should be allowed to access foreign capital. We also humbly request that prior to making any changes in the current guidelines for Ecommerce, all stakeholders should be taken into consideration," the coalition said. It added that e-commerce sector is already restricted with business-to-consumer ecommerce still out of bounds for foreign capital and the government should review the possibility of liberalising the industry.