Shopping on Flipkart, Amazon, Snapdeal and thousands of other similar websites would become a costing affair in Telangana as the state government is all set to impose sales tax/VAT on online sales of goods. The online giants were escaping taxes as their units do not exist in the state.
However, The Telangana state found a way to catch online shopping portals under tax web. The government threatened to cancel the licenses of their dealers if they do not pay the tax for the products sold in the state.
The total tax receipts of the state amounts 35,378 Crore in which sales tax alone contributes Rs 26,963 Crore. The state government is losing two ways due to online sales without tax. The sales in the shops in the state have decreased which means the sales tax decreases too. The online portals that curb away the local shop’s sales pay no tax.
Etela Rajender, Finance Minister held a meeting with the officials of commercial taxes department to discuss the issue. The government is all set to amend the laws to add to its revenue through taxes on online sales.