Flipkart Challenges Entry Tax on Online Sale in Gujarat High Court

After some states like UP and Bihar in the country introduced the E-commerce entry tax, Gujarat is also going to implement the tax soon as well. The Government of Gujarat has passed a bill that imposes an E-commerce Entry tax that taxes goods purchased through any online marketplace. Passing the bill is a amount to secure the local traders and businesses from online cheaper prices.


Finance Minister of Gujarat 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”.

 There has fixed tax for online purchases in Gujarat that will includes sellers from other regions selling goods in Gujarat through an online website

For this movement leading e commerce site Flipkart has filed a petition in the Gujarat High Court against the Gujarat Government for introducing the entry tax on e-commerce purchases.

They are telling the tax is unfair and might also dicourage local manufacturers from selling online in the state. This was the whole point of e-commerce, to provide goods and services at cheaper costs.

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