Shopping from Chinese websites could become expensive in India

Indian consumers buying from Chinese e-commerce platforms like Shein and others may have to pay tax. The tax may be a blend of GST and customs duty and would be levied on buyers at the payment stage. The aim is to crack down on the purchase of such goods and curb illegal imports. Chinese e-commerce platforms ship goods ordered by Indians, claiming they are gifts. They misuse a rule that exempts gifts with a value of less than Rs 5,000 from customs duty. What’s undecided is whether to impose one blended tax or separate taxes for various categories of products. A flat rate for all product categories may create problems. Payment gateways may be brought on board the scheme and when the consumer pays the money IGST and customs duty will be included in the price.

At one time, about 2,00,000 Chinese products were shipped to India every day compared with about a million a day delivered by Indian online retailers. The numbers from China started to go down after the crackdown began in January. Courier shipments worth Rs 1,00,000 or less to Mumbai airport fell 55 per cent in the first quarter of 2019. Mumbai received 50,713 shipments in March, down from 1,13,101 in December.