VATLive > Blog > India > India closes import duties e-commerce exemption

India closes import duties e-commerce exemption

  • Jan 10, 2020 | Richard Asquith

India has withdrawn from 12 December 2019 the ₹5,000 (approximately €63) import duties exemption threshold on ‘gifts’ being shipped to Indian consumers. Previously, ‘gifts and samples’ below this value were imported without any duties charge.

This simplification for person-to-person shipments has allegedly been abused by foreign marketplaces, especially shopping apps from China, to sell tax-free to Indian consumers. The aim is to level the tax playfield for Indian online and traditional retailers who must charge tax of up to 60% on all their sales.

Marketplaces must register with the Ministry of Commerce by June 2020 to start reporting the transactions.

Latest Indian news

India cuts hotel GST Oct 2019

Sep 21, 2019  

India's GST Council has announced a range of tax stimuli, including a reduction in the Goods and Services Tax rate on hotel accommodation...

India cuts GST on range of supplies

December 28, 2018 

The Indian Goods and Services Tax Council has agreed on  to cut the GST rate on over 20 goods and services. The reductions, mostly from the 28% to 18% rate, will come in on 1 January 2019 

India simplified GST returns April 2019

December 06, 2018 

Following the technical issue on the July 2017 introduction of Goods and Services Tax in India, a new simplified GST return will be launched from April 2019

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
VATlive newsletter

Sign up for our free newsletter stay up-to-date with the latest tax news.

VAT Voice

Sign-up to VAT Voice, Avalara’s monthly round-up about VAT and legislation updates to help you stay ahead of the curve.