Small and Medium Enterprises (SMEs) have asked the government to form a friendly policy to liberalise the e-commerce sector. These retailers, who are selling products on e-commerce platforms, want government to treat their virtual shops as technology platform.

Recently in a letter to Commerce and Industry Minister Nirmala Sitharaman, with copies to the Finance & MSME Ministry and the DIPP, industry body e-Commerce Coalition has outlined possible developments in policy and rules that could help the sector grow exponentially.

“Our intention is to point out the impetus e-commerce is providing the national economy and merely red-flag the concerns of the industry. E-commerce has the potential to power our economy through growth of enterprise, infrastructure and employment and it must be helped, enabled and liberalized to achieve its potential”, said Aamir Jariwala, Secretary, e-Commerce Coalition, speaking about the representation.

The representation from the small and medium businesses outlined the impact e-commerce has had on employment generation, logistics, infrastructure, electronic payments, growth of new enterprises and scaling up of existing enterprise and convenience for customers.

The coalition raised issue of additional tax being levied on e-commerce deliveries in some states and demanded quick implementation of GST across the country.

“In the interim before the formal implementation of GST, request for the government to issue a notification for status quo that reduces the harassment faced by e-commerce players on VAT and other taxes“, the letter said.

The coalition recommended government to allow Indian e-commerce firms to access foreign capital.

“The e-commerce sector in its entirety should be allowed to access foreign capital. We also humbly request that prior to making any changes in the current guidelines for e-commerce, all stakeholders should be taken into consideration“, the coalition said.