The Gujarat government has passed a bill to levy entry tax on goods purchased through ecommerce portals.
The Gujarat Tax on Entry of Specified Goods into Local Areas (Amendment) Bill, 2016, was passed in the state assembly on Wednesday.
The bill amended the present Act of 2001 that did not cover ecommerce transactions. As per the government the previous bill affected the local traders as the goods on ecommerce websites were sold at a much cheaper price as no taxes were levied on these goods.
While presenting the bill, 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.”
As per the new amendments, the word “importer”, now also covers traders who “bring or facilitate to bring any specified goods for consumption, use or sale in Gujarat from any part of the country using online platforms.” Henceforth, these reporters are liable to collect the tax from the consumer, and pay it to the government.
The rate of tax imposed and the procedure to be followed will be specified later, through a separate notification.