The Confederation of All India Traders (CAIT) has called for the imposition of a “luxury tax” on all e-commerce purchases, proposing that it be brought under the existing GST framework, according to a report by Livemint. The announcement came during CAIT’s national conclave in New Delhi, themed “The Cruel Face of Quick Commerce and E-commerce.”
At the event, Praveen Khandelwal, CAIT’s secretary general emeritus, stressed the need for immediate enforcement of FDI regulations in the e-commerce and quick commerce sectors to protect traditional retailers. He urged the government to implement the long-deliberated e-commerce policy and relevant rules under the Consumer Protection Act to preserve “retail democracy” in India.
CAIT also revealed plans to submit formal recommendations to the Ministries of Commerce and Consumer Affairs on the adverse impact that quick commerce platforms are having on local retailers. Members voiced concern over aggressive discounting and rapid expansion by deep-pocketed players in urban areas, claiming these tactics are pushing small, independent retailers out of business.
Khandelwal emphasized that quick commerce, though a growing sector, currently lacks any dedicated regulatory oversight. He urged the government to establish an independent regulatory authority for digital commerce that would oversee both e-commerce and quick commerce operations.
Furthermore, CAIT advocated for a ban on inventory-led online marketplace models, arguing that platforms should only act as intermediaries selling goods from third-party vendors directly to consumers. They also announced that allied groups like AICPDF and AIMRA will petition the Human Rights Commission to safeguard the welfare of gig workers employed by these platforms.
This appeal from CAIT comes as quick commerce players such as Blinkit (Zomato), Swiggy Instamart, and Zepto reached a combined revenue of $1 billion in FY 2023–24, transforming the online shopping landscape. Meanwhile, Flipkart has launched its own quick commerce service “Minutes,” and other giants like Amazon, Nykaa, and Myntra are also testing similar models.
