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India's largest online retailer, Flipkart knocked at the Gujarat High Court doors to challenge the 'entry tax' imposed on e-commerce players under the new law passed by the Gujarat government.
On Thursday, Flipkart Internet Pvt Ltd filed a petition objecting the recently passed The Gujarat Tax on Entry of Specified Goods into Local Areas (Amendment) Bill, 2016, which attracts 15 per cent entry tax on the online purchases.
The High Court admitted the petition and issued notice to the State Government to be heard in early June.
"We have challenged the tax. It is unjust and discriminatory, because no such tax is imposed on the goods brought into Gujarat through other modes of sale. The Hon Court has issued notice to the State and further hearing will take place on June 6," petitioner's counsel Dhaval Shah told BusinessLine.
The Portal has also maintained that it does not sell any product itself but only provides an online platform to manufacturers or traders.
However, the Gujarat government introduced the entry tax on e-commerce purchases to protect the interests of owners of brick and mortar stores and traders and provide them a level-playing field to compete with online players in the state.
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