Entry tax: Gujarat HC junks pleas of e-commerce firms

Citing the verdict of a constitutional bench in the SC on November 11 the bench held that the state governments are empowered to impose tax on goods coming from other states.

By: Express News Service | Ahmedabad | Published:December 2, 2016 5:45 am

The Gujarat High Court on Thursday dismissed a set of petitions moved by e-commerce firms challenging the notification of the state government to levy 6 to 21 per cent entry tax on goods that being purchased through their web portals in the state.

The division bench of Justice M R Shah and Justice B N Karia while upholding the notification rejected petitions moved by e-commerce firms, including Flipkart, Amazon. Citing the verdict of a constitutional bench in the SC on November 11 the bench held that the state governments are empowered to impose tax on goods coming from other states.

The e-commerce firms had challenged the “Gujarat Tax on Entry of Specified Goods into Local Areas (Amendment) Bill, 2016” which was passed on March 31 on the ground that the tax is discriminatory as no such tax is imposed on goods brought into Gujarat through other modes of sale.