Deloitte: E-commerce generates economic boost, but is challenged by taxation
Deloitte and the Confederation of Indian Industry have published a report entitled e-Commerce in India: A Game Changer for the Economy. The report lists a number of positive long-term effect of e-commerce on the economy, including in employment, exports, product quality and tax collection. According to the report, e-commerce has been able to grow rapidly due to increased Internet penetration in the country, but is challenged by a number of factors, including taxation. ‘The lack of a uniform tax structure leads to several issues such as double-taxation or impediments in the free flow of goods across the country.’ The report believes that the ensuing Goods and Service Tax might help overcome this barrier.