India, May 13 -- Walmart-owned Flipkart suffered a setback after the West Bengal Appellate Authority for Advance Ruling (WBAAAR) reportedly struck down a proposed structure that sought GST exemption on delivery charges collected from customers.

The ruling could have wider implications for ecommerce and quick commerce platforms that have been exploring similar models to reduce the tax burden on delivery fees, a key cost component for such businesses.

According to an ET report, Flipkart had proposed a structure under which it would classify itself as a goods transport agency (GTA) while handling deliveries from a "source mother hub" to customers' doorsteps.

Under the model, the company planned to issue documents similar to consignment no...