The Calcutta High Court will hear Flipkart India’s challenge to a ruling on the GST treatment of its logistics services on November 16, in a dispute involving an estimated tax liability of about Rs 500 crore.
The case concerns whether transportation charges collected by Flipkart from individual customers qualify as exempt goods transport agency (GTA) services under GST law, according to legal experts familiar with the matter. The revenue department has argued that the arrangement is, in substance, a courier and logistics fulfilment service and should be taxable.
Flipkart had restructured its logistics operations and maintained that the transportation charges related to GTA services, which it said were exempt from GST. An advance ruling appellate authority initially ruled in the company’s favour in June.
The revenue department subsequently challenged that decision, after which the authority overturned its earlier ruling. The revised decision held that Flipkart’s arrangement was a courier and logistics fulfilment service rather than an exempt GTA service.
Flipkart challenged the appellate authority’s decision before the High Court in August. A single-judge bench led by Justice Smita Das is hearing the matter.
Senior Supreme Court advocate Anand P Datar appeared for Flipkart on Thursday. The state was represented by advocate general Surajit Nath Mitra, along with Samarjit Roychowdhury and Bipul Kundalia.
The dispute could affect the GST treatment of similar logistics arrangements used by e-commerce companies, experts said. The High Court’s hearing on November 16 is the next scheduled step in the proceedings.
