Delhi VAT dept finds 9,000 unregistered ecommerce sellers & 60 defaulters

Delhi VAT department has directed the State Government to keep a close watch on the ecommerce industry, as it’s gradually becoming a breeding ground for illegal merchants and tax-violating companies.

9,000 unregistered sellers trading freely

In order to control tax evasion issues looming over the ecommerce sector, the Delhi VAT division instructed etailers and online sellers to register their business and file returns several times last year.

First in June, the department asked etailers to file quarterly tax returns. Then in September, they asked ecommerce companies to furnish basic seller details.  Finally, in November the government requested all ecommerce companies and Delhi-based online sellers to submit tax returns by November end.

Turns out, few sellers & etailers did not pay heed to their requests. The VAT department discovered that at least 9,000 city-based sellers listed on over 127 ecommerce platforms including Flipkart, Amazon, Snapdeal and Paytm have still not registered their business.

60 etailers to be penalized for tax evasion

Besides online sellers, officials are also going to come hard on ecommerce companies that have failed to file their returns. Out of 127 online players, 60 feature in the defaulter’s list. The VAT department has dispatched notices to each one of them along with slapping Rs. 50,000 fine. They may also register cases against the defaulters for tax evasion.

“The idea is not to discourage people from buying online but to ensure that there is no tax evasion,” said VAT commissioner SS Yadav.

Online sellers, have you filed your returns? If not, we urge you do it before tax officials come knocking at your door.