Retail mogul Gerry Harvey remains committed on his stand to GST on Australian consumers' internet-based shopping despite the backlash spawned by his campaign.

Harvey, along with leading retailers such as David Jones, Myers and Target, called on the federal government to consider the placing of GST on online purchases to effectively level the playing field for Australian retailers and offshore-based sellers offering services through their official websites.

The call came amidst struggling sales numbers from the retail industry, which Harvey said all the more convinced him that tax is just despite criticisms he attracted from Australian consumers poised to bear the brunt of new taxes once the proposal has been implemented.

Notwithstanding the swirling news of him backing down, Harvey stressed that he is ready to stand up and fight for his cause as an ABC report quoted him as saying that "if I think something is right I'll fight for it, always have. If it's wrong or I've been proved wrong I'll walk away and I'll apologise."

The retailer added that he expects other players in the industry to get actively involved in the campaign as this is about their future and the important prospect of ensuring that retail revenues and employment opportunities are enjoyed by Australians.

Australian retailers have urged Prime Minister Julia Gillard that to seriously consider the possibility of implementing GST too on online purchases exceeding the $1000 mark lest foreign retailers are given undue advantage over local retailers.

Also, major Australian retailers are insisting that once permitted to go on, the prevailing practice of Australian consumers to do their shopping online would eventually take away available jobs from Australia.

However, the government has declared that while retail industry's suggestions have taken into consideration it would not be compelled by active lobbying from the sector to adapt online GST automatically.

Assistant Treasurer Bill Shorten said on Friday that the federal government would not be prodded to follow the whims of giant retailers just because they have a direct access to the government.

Shorten also reminded the sector that practical implementation of their suggestion would be logistically impossible since not enough custom officers could be deployed to monitor online transactions made by Australian consumers with offshore retailers.

The government, however, has referred the matter to the Productivity Commission, which has commenced its structural assessment of the local retail industry to aid on its findings on the issues that currently bedevils the sector.