Commerce & Industry Min agin extending Feb 1 deadline for e-tailers
The commerce and industry ministry is not in favour of extending the deadline of February 1 for implementing the revised guidelines for e-commerce companies having foreign direct investment, sources said.
Both Amazon and Walmart-owned Flipkart have sought an extension of the February 1 deadline for complying with the revised norms, stating that they need more time to understand the details of the framework.
While Amazon has asked for time until June 1 this year, Flipkart has asked for six months.
On December 26, 2018, the government tightened norms for e-commerce firms and barred online retailers like Flipkart and Amazon from selling products of the companies in which they have stakes.
The government also prohibited e-commerce companies from entering into an agreement for exclusive sale of products. As per the revised guidelines, a vendor cannot procure more than 25 per cent of products from group companies of the same marketplace where they intend to sell them.
"The ministry has received representations from Amazon and Flipkart for more time. Internal discussions are on. But the ministry is not in favour of extending the deadline," sources in the know of the matter said.
Domestic traders body Confederation of All Indian Traders (CAIT) has asked the ministry not to extend the deadline for implementation of the changes.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.