HomeDelivery, Logistics & FulfillmentIndian Government bans companies from importing e-commerce orders as gifts

Indian Government bans companies from importing e-commerce orders as gifts

There has been a lot of talk about how e-commerce companies, or e-commerce in general, has done a lot of good to the world. Well, there are no doubts about that but what we need to note is that not everything is great in the world of e-commerce. We mean to say that there are hardly any profits in the e-commerce world and every company in this segment is burning money in order to get customers and then retain them. It is known that there are certain ways in which e-commerce companies are escaping taxes from various governments as they import items into the country.

Talking about the Indian government and its e-commerce market, we know that both of them have been mostly supportive of each other. However, there are certain things that are not liked by the Indian government regarding e-commerce companies. One of them is the habit of importing items from outside India mostly from China to India in the form of gifts. Basically, there is a provision in the customs department of India that any parcel which is marked as a gift should not be opened as well as no import taxes apply on it. Thus, e-commerce companies such as Shein, Club Factory and others, as per Inc42’s report, were importing e-commerce items marked as gifts to evade taxes. This practice has now been shown red-eye by the Indian government.

Reportedly, the Indian government was contemplating putting a limit to the number of gifts that can be imported by an individual from outside of India. But now, the government of India has decided that import taxes will be levied on gifts which are imported to India as well. While this is a good move to stop people from fleeing without paying taxes, it is not so great for those people who genuinely get gifts from outside and they still have to pay taxes on them.

James Miller
James Miller
I am passionate about technology and writing. I have 10+ years of experience in working with different digital media companies. If you have an interesting story, please feel free to send a mail to james@ecommercenext.org

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