After Flipkart, Amazon too challenges entry tax in Gujarat

While issuing the notice, the division bench of the high court led by Chief Justice R Subhash Reddy tagged the case along with an identical petition moved by another e-commerce company Flipkar

By: Express News Service | Ahmedabad, Ahmedabad News | Published: June 17, 2016 2:02:18 am
Amazon, Gujarat Amazon case, Amazon tax case, gujarat flipkart case, Flipkart, flipkart tax case, flipkart case, india flipkart, gujarat flipkart tax case, gujarat news, india news The petitioners have claimed that the tax is discriminatory as no such tax is imposed on goods brought into Gujarat through other modes of sale.

The Gujarat High Court on Thursday issued a notice to the state government on a petition filed by Amazon India against the state government’s notification levying 6 to 21 per cent entry tax on goods that are being purchased through the e-commerce portal in the state.

While issuing the notice, the division bench of the high court led by Chief Justice R Subhash Reddy tagged the case along with an identical petition moved by another e-commerce company Flipkart. The bench will hear the cases together on June 20.

Both the firms have challenged the Gujarat Tax on Entry of Specified Goods into Local Areas (Amendment) Bill, 2016 passed on March 31.

The petitioners have claimed that the tax is discriminatory as no such tax is imposed on goods brought into Gujarat through other modes of sale. They have said that they only provide an online sale platform to manufacturers, traders and buyers but the firms themselves are involved in selling any product.

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From April 1, any goods being purchased online are being subject to 6 to 21 per cent entry tax. While normal goods are being levied 6 per cent tax, specified goods are subject to up to 21.6 per cent tax, with majority of goods being levied around 12 per cent tax.

The government had amended a 2001 Act, with the aim to cover e-commerce transactions in its ambit, as the government felt this was adversely affecting local traders. The new law amends the word “importer” to cover those 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”. With PTI

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