Based out of Rajasthan, Pritam Maheshwari is a furniture manufacturer who retails his goods on an e-commerce portal in India. When he ships his product to Bengaluru, he has to pay Value Added Tax (VAT) in Rajasthan and entry taxes in Gujarat, Maharashtra and Karnataka. Although the tax structure drawn by the e-commerce portal does not show up on the invoice, there is enough evidence which suggests that this complicated tax structure has become a ruse for State governments to harass e-commerce companies
“GST will make compliance easier for e-commerce companies. Since the government is banking on large IPOs from startups, it can boost investor confidence by passing this Bill,” says Sanchit Vir Gogia, Chief Futurist, Founder and CEO, Greyhound Knowledge Group. But he adds that we must wait and see if e-commerce becomes a part of GST if at all it becomes an act.