At Indian Online Seller, we recently published sellers’ views on goods and services tax (GST). There were divided opinions on GST as far as vendors POV are concerned. But Indian ecommerce players think that implementation of this bill would help to eliminate tax troubles to an extent.
It would also succeed in pacifying physical retailers and state governments that have been complaining about dwindling revenue due to ecommerce companies.
In the absence of ecommerce-centric laws and regulations, various State governments took it upon themselves to fix entry tax for ecommerce entities. IOS has widely reported about such policies. For instance, Himachal Pradesh government released entry tax circular in February this year. Then there’s Gujarat, Maharashtra, Jammu & Kashmir, West Bengal, Uttar Pradesh, and Punjab, each have their separate tax percentage. Patna high court also called entry tax on online purchases unconstitutional and illegal.
With GST, etailers hope that days of different entry tax for different States would be over.
While speaking about GST, Amazon India’s spokesperson affirmed,
“We believe GST is good for the e-commerce industry as it would eliminate hurdles in inter-state delivery and subsume the entry tax introduced on e-commerce shipments by some states.”