India extra e-retailing VAT

The western Indian state of Gujarat (population 60 million) is imposing additional VAT on goods sold to its citizens online from out-of-state.

This will act as an ‘entry VAT’ for online retail across state borders. The aim is to prevent e-retailers from having an unfair price advantage over traditional retailers if they source goods from outside of Gujarat.

The state senate will ratify the proposal next.

The major online platforms in India include: Flipkart, Amazon and Snapdeal.