Entry Tax implemented by State Governments on Online Stores

[Sushubh]

e-shopping to get 5% costlier in UP - Times of India

I believe this is what we call octroi? At least one state in South India has a similar tax I believe?

Lucknow: If you are in habit of ordering goods from e-commerce site, get ready to pay 5% more. The Uttar Pradesh government on Tuesday imposed an entry tax on stuff purchased from e-retailers. The state cabinet chaired by chief minister Akhilesh Yadav okayed the proposal to placate lakhs of retailers who are agitating against growing e-business which was hurting their profits.

With today's decision, all products delivered though e-commerce sites and reaching UP's borders will be charged a 5% tax. The annual trade through e-commerce in UP is around Rs 10,000 crore. A similar tax is already in place in Uttarakhand , Bihar and West Bengal on goods purchased through online shopping. The state plans to collect around Rs 500 crore tax by imposing the tax.

 

[deadmenkiller]

So one by one state, taxing online products. Price difference will become less in online & offline outlets.
Good for offline stores, not for online buyers.

 

[Sushubh]

Three e-tailers before HC against Gujarat's entry tax law - Times of India

With two e-commerce platforms Amazon and Flipkart, an internet-based grocery delivery service Instacart too has challenged the state government's decision to levy 'entry tax' on the goods supplied in Gujarat through online shopping.
The court has issued notice to the state government on Instakart Service Pvt Ltd's petition and the hearing is now scheduled on Monday. Petitions by all three companies will be heard together. Instakart has contended that the decision to differentiate between online-service providers and local players is against the constitutional provisions and hence the newly introduced entry tax must go.

 

[SVK]

What if item delivered was already stocked within that state, then there should be no entry tax?

 

[Sushubh]

Source

 

[Prathamesh]

waiting for gst... once it's passed then all this bs will stop

 

---