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The task force on policy for e-commerce, set up by the Centre, is examining various issues related to digital transactions including the definition and coverage of the policy, scope for imposition of Customs duty on e-transmission of goods and services, the revenue loss if taxes are not imposed and implication of General Anti-Avoidance Rule (GAAR) on e-commerce.
The nine sub-groups formed under the task force, which are examining specific aspects of the proposed policy, will give their suggestions for further discussions to the task force on July 4, a government official told BusinessLine .
“All nine sub-groups had intense discussions on matters being examined by them last week. They were all handed a list of areas to be explored by the task force and were asked to submit their detailed observations on July 4 when there would be a brain-storming meeting,” the official said.
India’s e-commerce market, currently valued at about $27 billion annually, is one of the fastest growing in the world. The government has felt the need to come up with a comprehensive e-commerce policy as it is facing intense pressure to get into negotiations to liberalise the sector at various bilateral and regional forums and the World Trade Organisation and in the absence of a proper domestic policy it is difficult to take a well-considered stand on the matter.
The task force on e-commerce is headed by the Commerce Secretary and comprises Secretaries and senior officials from key ministries and departments, including IT, telecom and finance.
The task force has asked the sub-group on digital products, customs duties and taxation to give clarity on the coverage of digital product / e-commerce and also explain the implications of agreeing to non-discriminatory treatment of digital products.
On taxation, the sub-group has been asked to examine a plethora of issues such as whether there should be a permanent moratorium on Custom duties on electronically transmitted products at the WTO and the scope of imposition of Customs duty on electronic transmission of goods and services.
It has also been asked to study the revenue loss due to non-imposition of Custom duty and possible future implications due to advent of new technologies like remote additive manufacturing including 3D printing and also issues regarding the Goods and Services Tax and implementation of GAAR.
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