After Flipkart, Amazon India has also challenged State Entry Tax for online purchases.
The Gujarat High Court bench comprising of Chief Justice R Subhash reddy and Justice V M Pancholi has issued a notice yesterday to the state government on a petition filed by Amazon India through Advocate Anand Nanavati.
The petitioners have challenged the validity of notification levying 6 to 21 percent entry tax on goods that are being purchased through e-commerce.
Amazon challenges the state government’s amendment to the law to levy entry tax on goods purchased through e-commerce portals, which has apparently been done to provide a level- playing field to traders and retailers in the state. Like Flipkart, Amazon has claimed that the tax is discriminatory because no such tax is imposed on goods brought into Gujarat through other modes of sale. It has held that it only provides an online platform to manufacturers, traders and buyers and itself is not involved in selling any product and hence the tax is unjustified.
The bench posted the matter for further hearing on June 20, tagging it along with a similar petition filed by competitive e-commerce company Flipkart.
