Himachal Pradesh govt. releases entry tax circular; How much will it charge in Online Retail?

http://www.eenaduindia.com/State/Telangana/2015/04/01193125/Telangana-starts-levying-entry-tax-on-AP-vehicles.vpf

With the delay in GST, entry tax still prevails and is adding to the taxation burden. Online marketplaces feel entry tax is unnecessary. In Gujarat, etailers lost the long legal battle against entry tax. The Maharashtra government encourages taxing goods from other states, so do the state governments in UP, J&K, Rajasthan and Himachal Pradesh.

In fact, Himachal Pradesh has sent out a circular informing the public that it will be now charging a 5% entry tax on goods purchased oonline from other states. This tax was made effective from the 1st of February 2017.

According to the circular, all taxable goods mentioned in Part-I, Part-I ‘A’, Part-II, Part-II-‘A’, Part-II-‘AA’ and Part-III of Schedule-A appended to the Himachal Pradesh Value Added Tax Act, 2005, when purchased online through e-commerce will be charged a 5% entry tax.

State governments are still of the opinion that entry tax helps create an even playing field. Etailers, on the other hand, beg to differ, as they feel it will only add to their losses and call for more changes once GST is in play.

What are your opinions on entry tax in ecommerce? Do you think it is essential? Do you agree with the perspective of other sellers?

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