Home / Knowledge / News / Apparel/Garments / Gujarat to levy tax on e-commerce transactions
Gujarat to levy tax on e-commerce transactions
31
Mar '16
Barely two weeks after e-commerce major Flipkart dragged the Uttarakhand government to court for imposing a 10 per cent entry tax in the state on goods purchased from e-commerce firms, the Gujarat government passed a similar bill on Wednesday.

The bill proposes to levy entry tax on goods purchased through e-commerce portals. The government claims the bill was necessary to provide a level playing field for traders and retailers in the state. The rate of tax is yet to be decided.

The Gujarat Tax on Entry of Specified Goods into Local Areas (Amendment) Bill, 2016, was passed in the state assembly in the absence of Congress MLAs, who were suspended on Tuesday for two days by the Speaker.

The bill amended the present Act of 2001 that did not cover e-commerce transactions, which according to the government, was adversely affecting the local traders as the goods coming in the state through such means was sold at a much cheaper rate due to non-payment of any tax.

"Due to the recent development in the field of online purchase, web-based software applications or through tele-shopping platforms, which does not attract any tax under the present Act, local businesses were adversely affected," state Finance Minister Saurabh Patel said while presenting the bill.

According to the bill, the word "importer", as specified in the present Act, now also covers those who "bring or facilitate to bring any specified goods for consumption, use or sale in Gujarat from any part of the country using online platforms."

Further, such importer is now liable to collect the tax from the person (consumer) for whom the goods are brought and pay it to the government in a prescribed manner, as per the bill.

The bill was introduced after several trader bodies made representations to the state about online platforms selling "cheap" goods in the absence of a proper tax structure applicable to them.

Maharashtra, Bihar and Karnataka also have an entry tax on e-commerce goods.

E-commerce companies had earlier 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. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

Pic: Shutterstock

Textiles | On 29th Feb 2020

Nepal's pashmina sector gets European Union boost

A new project funded by the European Union to strengthen Nepal's path ...

Pic: Shutterstock

Apparel/Garments | On 29th Feb 2020

Coronavirus outbreak hits Thai garment industry

The coronavirus outbreak has been affecting the Thai apparel industry ...

Pic: Shutterstock

Retail | On 29th Feb 2020

Indian govt clarifies on sourcing of goods from SEZs

Goods procured from units in special economic zones (SEZs) by...

Interviews View All

Top executives, Textile industry

Top executives
Textile industry

Textile institutes need to change their curriculum

Shawn Honeycutt, Bolger & O'Hearn

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Textile Industry, Head honchos

Textile Industry
Head honchos

African fashion has a strong identity

Alexander Foll,

Alexander Foll

Germany-based H Stoll AG & Co KG manufactures flat knitting machines....

Nuria Estape,

Nuria Estape

Archroma is a global colour and specialty chemicals company headquartered...

Hans Gerhard Wroblowski,

Hans Gerhard Wroblowski

Germany's Monforts is a leading manufacturer and exporter of textile...

Mark Brill, Birmingham City University (BCU)

Mark Brill
Birmingham City University (BCU)

<div>A technological breakthrough could see people getting messages about...

Eamonn Tighe, Nature Works LLC

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Lynda Kelly, Suominen Corporation

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Ruma Devi, Gramin Vikas Evam Chetna Sansthan

Ruma Devi
Gramin Vikas Evam Chetna Sansthan

Ruma Devi is a jet-setting promoter of artisans who has empowered...

Yash P. Kotak, Bombay Hemp Company

Yash P. Kotak
Bombay Hemp Company

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

Karan Arora, Karan Arora

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


February 2020

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


Advanced Search