Flipkart Chooses Telangana Over Karnataka For Its Largest Warehouse Setup [Taxation Clarity Wins]

Flipkart has chosen Telangana over Karnataka to set up its largest and the 16th warehouse in the country. The move arises after Karnataka government’s refusal in reversing a disputed e-commerce taxation regime, reports Economic Times.

Flipkart’s Co-founder, Binny Bansal said that the plans of setting up a warehouse in Karnataka was scrapped due to the government’s policy on VAT and other forms of taxation levied on e-commerce companies. “There is an ongoing dialogue with the government and we hope to reach some clarity within a few days,” says Bansal.

“We were locating another place if not Karnataka, and Telangana was the next place from where we could reach majority of our customers in South India. There is clarity on taxation in Telangana. From there, we hope to reach 70% of our customers in South India. There is clarity on taxation in Telangana. From there, we hope to reach 70% of our customers in South India in a single day,” added Bansal. (Source)

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