The legal atmosphere of the country is rising with Amazon recently filing a case against Gujarat state government for imposing Entry Tax. This is a tax which is levied on products or goods which has been purchased online and is delivered from outside the state.
According to a new report by ET, Amazon is only a facilitator, it’s an online portal where buyers and sellers meet, and it itself doesn’t import or consumes any product, and the company as such has nothing to do with the goods.
However,Gujarat government has a different take on this. It believes that this tax will protect offline retailers from competitive discounts that online sellers offer, thereby taking edge over them. Ecommerce in India is projected to reach $119 Bn in next 4 years. As per Nasscom, creating such barriers will not only impact the financials of the ecommerce companies but also restrain new and foreign players from entering into the market.
The market is already trying to cope with burgeoning losses, low investor sentiments and rising consumer expectations in terms of delivery and quality. It is a summarization of an article from INC42. For more information visit, https://inc42.com/flash-feed/amazon-files-lawsuit-gujarat-government-entry-tax/