The Flipkart Sellers Are Upset Over the GST OTP Mandate

A new requirement that requires sellers on Flipkart to authenticate their goods and services tax identification number (GSTIN) via an OTP (one-time password) authentication procedure has left many vendors confused.

According to sellers, Walmart-owned Flipkart may be attempting to obtain their private GST data while posing as a verification procedure to get sellers' GST credentials. Sellers further claim that no rationale has been given for starting the process.

After vendors provide Flipkart with the OTP, the company can access their data through an API. All data collected before GSTIN registration would be available to the company.

Merchants' yearly turnover and sales on competing marketplaces like Amazon and Meesho can be found in the data, according to many merchants who spoke with the media. In addition, sellers shared a message they got from the company asking customers to authenticate their GSTINs using an OTP to avoid possible location blocking.

Flipkart’s Clarification

The One-Time Password (OTP) that sellers provide on the platform is a one-time process, according to a statement released by Flipkart. This process is designed to authenticate that the GST registration number belongs to a specific seller who is conducting business through Flipkart.

Additionally, it is designed to prevent any unauthorized individual from manipulating a seller's GST number. An official spokesperson for the corporation stated that this does not grant them access to the information that they have included in their GST reports.Even though

Sellers’ Counter on the Above Clarification

However, sellers have mentioned that Flipkart already validates their GST paperwork, PAN, and Aadhaar data during the initial setup phase. This is something that vendors have mentioned in a media report. Even though it is still reasonable to request OTP verification from new vendors, there is no justification for requiring existing merchants to go through the system.

There are some vendors who have granted access to OTP to Flipkart because they do not want their sales over the holiday season to be negatively affected. An effort to steal data appears to have been made here. These procedures are not followed by any of the other marketplaces, including Myntra, which is owned by the Flipkart Group.

Those who are knowledgeable in the field of finance believe that if Flipkart claims that the OTP verification is a one-time operation, then they may only do so to validate the registration. However, the submission of an OTP by a seller does provide the company with access to the information that sellers have submitted on the GST portal. When it comes to sellers, their concerns are not completely unwarranted.

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