Flipkart, one of the leading e-commerce startup in India, had earlier applied to become a GST Suvidha Provider, but missed out on becoming one when the GST Network announced the list in two phases. GST Network is in charge of the technological infrastructure for the new goods and services tax regime.
As per the reports, Flipkart fell short in fulfilling the requirement of minimum paid-up capital which is required to be ₹2 crore. While the minimum requirement is ₹2 crore, Flipkart has a paid-up capital of only ₹48 lakhs.
However, a spokesperson of the Bangalore-based e-commerce startup has said that there are some procedural matter to be clarified, and they shall be re-applying for GSP shortly.
In the first list, the agency had shortlisted 34 GSPs, and later, it included 69 more companies to become GST Suvidha Providers to facilitate more channels to route invoices under the GST.
The GSTN had lowered the eligibility criteria for applicants in the second batch to ₹2 crore paid up capital from ₹5 crore and an average turnover of ₹5 crore in the last 3 financial years from ₹10 crore.
Along with Flipkart, many internet firms had applied for a GSP licence to be able to transfer invoices under the Goods and Services Tax directly to the central database. The startups which failed to make it to the list include ClearTax, LegalRaasta and Moglix, among others.
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