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India has withdrawn from 12 December 2019 the ₹5,000 (approximately €63) import duties exemption threshold on ‘gifts’ being shipped to Indian consumers.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.

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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 won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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