Monday, November 25

Now, This Indian State to Impose Tax on E-commerce Shipments

Himachal Pradesh has become the latest state to impose tax on e-commerce shipments with the state Assembly today passing a bill providing for levying tax on all online purchases to check revenue loss caused by online trading. Major states like Gujarat, Madhya Pradesh Rajasthan and Uttar Pradesh have already announced imposing tax on online purchases to protect local traders.

The HP Assembly passed the Himachal Pradesh Tax on Entry of Goods (Amendment) Bill 2016, that provides for levying tax on all online purchases to check revenue losses caused by online trading.

The bill was passed without any discussion as the BJP members were protesting on some other issue when the bill came up for discussion. As per Excise and Taxation Minister Parkash Chauhdary, the Bill includes provisions to tax as it was providing “uneven” playing field for local businessmen and also causing revenue loss to the government.

A clause has been inserted in the Himachal Pradesh Tax on Entry of Goods (Amendment) Bill 2016 providing for levying of tax on e-commerce.

“Notwithstanding anything contained in section 3, tax shall be levied on entry of goods specified in schedule II, made through online purchase or transactions or through e-commerce,” says the clause.
The tax shall be levied on the value of goods in the manner prescribed and shall be collected from person-in-charge of the goods on behalf of the importer.