As the eCommerce giant Flipkart fell short of minimum paid-up capital requirement of rupees 2 crore, it missed out the chance to become a GST Suvidha capital. It was among many internet firms who applied for a GSP licence so that it can transfer invoices under Goods and Service Tax (GST) to the central data base.
Flipkart’s paid-up capital
As per MCA filings, Flipkart’s paid up capital is Rs 48.43 lakh. Aside from Flipkart, 38 different candidates, including ClearTax, Moglix and Intuit India did not make the slice as they were observed to be “ineligible according to financials”, as indicated by the GST Network gateway.
“There are some procedural matter which need to be clarified, but soon we will reapply for GST” as said by a Flipkart spokesperson.
Lowering of elgibility Criteria by GSTN
The GSTN had brought down the qualification criteria for candidates in the second cluster to Rs 2 crore paid up capital from Rs 5 crore and a normal turnover of Rs 5 crore in the last 3 budgetary years from Rs 10 crore.
The GST network earlier this month selected some 69 companies who were selected for final round to become GSPs from total of 160 applicants that include HDFC corporation, Zoho Corporation, PwC and KPMG.
Clear Tax developing its own Software
ClearTax, which is building up its own particular programming answer for organizations to follow GST, said it was searching for a GSP permit essentially for cost advancement. The organization likely did not make it since the organization’s enrollment in India is just finished a year old.
On other hand Infosys which has earlier also applied to be GSP, withdrew its application. Currently the IT giant is focusing on GST portal for which it secured 1,380 crore contract.