An Indian electronic commerce company Flipkart plans to reapply and become a (GST) Suvidha Provider by increasing it’s paid up capital. The e-commerce firm aims to use the GSP license to help its sellers become complaint under the Goods and Services Tax (GST).

 

Flipkart earlier was unable to become a GSP

Flipkart had neglected to wind up plainly a GSP since it didn’t get the base paid-together capital prerequisite of Rs 2 crore set by the GST Network (GSTN), the nodal organization accountable for the mechanical foundation for GST.

Flipkart was among a few web firms that had connected for a GSP permit to have the capacity to exchange solicitations under GST specifically to the central database.

 

Flipkart increases paid up capital up to Rs 48.43 lakh 

As indicated by the filings with the enlistment center of organizations (RoC), Flipkart passed a determination on August 24 to issue extra offers to expand the paid-up share money to Rs 2.18 crore from Rs 48.43 lakh as it “means to get a permit for a GST Suvidha Provider.”

“The company intends to facilitate the GST compliance of sellers by offering them the service being a GSP. This would ensure that sellers are compliant with GST requirements, and is also expected to provide huge savings to them” Flipkart said in the resolution.

  

38 other applicants which could not apply for GSP

Aside from Flipkart, 38 other applicants, including ClearTax, Moglix and Intuit India did not make the slice as they were observed to be “ineligible according to financials,” as per the GST Network entryway. Flipkart had disclosed to ET not long ago that there were, “procedural issues to be illuminated” and that it would be reapplying for GSP in a matter of seconds. A GSTN official ET connected with did not affirm when the following cluster of utilizations will be taken.

Startups such as Juspay have also increased its paid up capital by issuing bonus shares to meet up the requirements to be eligible for a GSP License.

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