PM Narendra Modi must stop ecommerce entry tax in Gujarat

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Ecommerce in Gujarat: If FM Arun Jaitley is hopeful that the Congress party will finally support in passing the goods and services tax (GST) Bill in the second half of the Budget session, why is the BJP government in Gujarat going ahead with an anti-GST tax measure?

Ecommerce in Gujarat: If Finance Minister Arun Jaitley is hopeful that the Congress party will finally support in passing the Goods and Services Tax (GST) Bill in the second half of the Budget session, why is the BJP government in Gujarat going ahead with an anti-GST tax measure? While the central government led by the Bharatiya Janata Party (BJP) has brought in the policy to streamline the norms for the ecommerce business and boost the fledgling sector; the BJP government in Gujarat has now passed a bill to levy entry tax on goods purchased through e-commerce portals. The so-called objective of the Gujarat law is to provide a level playing field for traders and retailers in the state. Though the central policy announced on Tuesday also talks about measures like restricting the discounts and a 25% limit on goods being sourced from a single vendor, aimed at ensuring a level playing field for the online and offline retail players — the Gujarat entry tax is not only a bad move in terms of a prudent taxation system, it is also anti-trade. It is hard to understand,  if Finance Minister Arun Jaitley is hopeful that the Congress party will finally support in passing the goods and services tax (GST) Bill in the second half of the Budget session, why is the BJP government in Gujarat going ahead with an anti-GST tax measure. The Gujarat entry tax is a retrograde step as it amounts to double taxation on ecommerce transactions as tax is already paid for them in the origin state. Read full story: Gujarat passes bill to impose tax on ecommerce transactions The GST will subsume all taxes of this kind that add to cascading so that a common national market could be established. So, if there is no place for entry tax in the GST, why is the BJP allowing the Gujarat government to go ahead with this? The ecommerce sector is an important element in the government’s flagship schemes like Start-up India and is growing at a rapid pace — the etailing business in the country has grown from $800 million in 2011 to $11.8 billion in 2015 and is expected to cross $100 billion by 2020. It should not be allowed to get adversely impacted by either the states’ eagerness to milk it for revenue purposes or gain politically by catering to the local traders’ demand of bringing measures to mitigate the advantages of the ecommerce players over them. If Prime Minister Narendra Modi is serious about GST, he must persuade the Gujarat government to avoid creating confusion by imposing an entry tax on the e-commerce transactions, and wait for the GST under which tax would accrue to the state where the goods will be consumed. Source: http://www.financialexpress.com/article/fe-columnist/pm-narendra-modi-must-stop-ecommerce-entry-tax-in-gujarat/231155/

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