Home / Knowledge / News / Apparel/Garments / Flipkart sues Uttarakhand Govt over entry tax
Flipkart sues Uttarakhand Govt over entry tax
Mar '16
E-commerce major Flipkart has moved the Uttarakhand High Court against a 10 per cent entry tax in the state on goods purchased from e-commerce firms.

Flipkart filed a petition with the court in February, arguing that the state government's move to impose such a high entry tax was discriminatory. The case will be heard next week and could see other e-commerce players joining in to help maintain parity in taxation of goods bought online and offline.

“The move by the Uttarakhand government of imposing 10 per cent additional tax will negatively impact hundreds of thousands of consumers in the state, who rely on e-commerce. This additional tax is on top of the tax already paid on such goods by the sellers in the state from where the goods have been dispatched,” a Flipkart spokesperson said.

E-commerce companies have alleged that this levy, which is imposed on the courier agent delivering the goods, leads to substantial increase in prices of goods sold online since it amounts to double taxation, and said they are mulling judicial remedy individually as well as collectively.

Maharashtra, Bihar and Karnataka also have an entry tax on e-commerce goods. A few other states are also planning to follow suit.

If Uttarakhand HC rules in favour of Flipkart, experts say it could deter other states from implementing such a tax as they, too, could be sued.

Flipkart has said it is engaged with several stakeholders to urge the Uttarakhand government to revoke the additional tax on e-commerce purchases.

Several states are targeting the boom in e-commerce, a sector which facilitated the sale of goods worth Rs 80,412 crore in 2015, to drive revenues. They argue that e-commerce transactions where purchases are done within the state but the delivery originates from outside the state are leading to a huge loss in revenues.

In Karnataka, Amazon is locked in a battle with the state government over a taxation issue for 18 months now. The state had asked Amazon to pay up on behalf of the traders on its platform that evade taxes. The company shot down the proposal and discussions to resolve the issue are still on. (SH)

Fibre2Fashion News Desk – India

Must ReadView All

Union textiles minister Smriti Irani addressing at the Texprocil Annual Export Awards. Courtesy: PIB

Textiles | On 22nd Oct 2016

Govt to extend special package to home textiles segment

The Central government is likely to extend the recently approved Rs...

Reebok Liquid Speed Grey. Courtesy: Business Wire

Apparel/Garments | On 22nd Oct 2016

Reebok’s Liquid Factory brings sneaker creation to US

Reebok, a pioneer in the sporting goods industry, has brought sneaker ...

Courtesy: GHCL

Textiles | On 22nd Oct 2016

GHCL to invest Rs 67.25 crore in textile division

Chemicals and textiles firm GHCL will invest Rs 67.25 crore in its...

Interviews View All

Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Igor Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search