Mumbai – The Flipkart Internet Pvt Ltd, runs the nation’s largest e-commerce website Flipkart, will be increasing the paid up capital. This is being done for to get the license to be a Suvidha provider of GST.
Flipkart has recently received a hefty $2.5 billion from Softbank. The company has mentioned its desire to become a GST Suvidha Provider. The fact that many of the sellers who are selling online are not compliant with the unified tax system has prompted Flipkart to decide to become a GSP.
Additionally, Flipkart has also raised the paid up capital to ₹ 2 crores. The previous paid up had been ₹ 48.43 lakh. The company has done this to become an eligible GST Suvidha Provider. According to the existing rule of GST, any company which desires to be an eligible GST Suvidha Provider would have a minimum paid up capital of ₹ 2 crore.
In the filing to the Registrar Companies, it was accessed in the business research. In the filing, Flipkart has mentioned that the reason for increasing the paid up capital is the desire to become an eligible GST Suvidha Provider. Flipkart is also making a plan to increase the bonus shares. For this, they have planned to issue 7 brand new shares. In a meeting which has been held on 24th August 2017, the company has declared the approval of the issuance of bonus share.
GST, the unified tax system, has been implemented in the country on 1st of July 2017. After the implementation, Government has decided to allow the corporate houses to turn into eligible GSP. There is no law which can restrict a start up or an IT company to become GSP. The option is not available only to the ERP companies, according to a close source.