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Gujarat,, Rajasthan and MP among others to impose Entry tax on Ecommerce goods

After Uttarakhand, Bihar and Assam, many more states have come up to impose 10% entry tax on goods purchased online thereby putting direct pressure on the ecommerce industries. Entry tax usually means a tax which any state imposes on goods coming from another state. Gujarat, Madhya Pradesh and Rajasthan have also now come up with the same entry tax policies.

  • However, the ecommerce companies have said that this tax on courier agents and agencies delivering goods will significantly increase the prices of goods sold online because this entry tax will lead to double taxation.
  • Sudhanshu Gupta, vice-president (business) of Paytm said that this tax therefore will prevent sellers who directly sell products to customers from various part of the country to utilize ecommerce sites.
  • Goldman Sachs has reportedly projected that India with a present $23 billion online retail market (one of the largest ecommerce markets) will increase to $69 billion by the year 2020.

(Sources: ET)

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