Recently Gujarat Government passed a bill to levy entry tax on goods purchased through e-commerce portals.
The State Government intends to provide a level playing field for traders and retailers in the state, as the online discounted good was affecting the local trade.
Clarifying the need for the bill, State Finance Minister Saurabh Patel, said, “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.”
The e-commerce players already pay tax in the origin state and along with this, it will be a double taxation for the companies.
On one hand while Central Government is easing policies and boosting e-commerce startups, state governments like UP, Uttarakhand are taking steps which will only enhance the ambiguity of the ecosystem and in no way help the companies to grow.