In order to implement effective taxation and integrate the rural economy, India must compete with Chinese e-commerce
One economist contends that rather than the American e-commerce model, the Indian government ought to be drawing inspiration from the Chinese one.
Speaking at a book launch in Delhi, Arun Kumar remarked “India must adopt the Chinese e-commerce model. They were put into practise within the framework of their culture. It facilitated communication with local traders and the rural economy. However, we are emulating the American (US) model “. In his example, Kumar used Taobao, an Alibaba-owned Chinese e-commerce site with its main office in Hangzhou.
He was addressing the audience at the publication event for the book “E-commerce and GST in India,” written by assistant professor of economics at Delhi’s Aryabhatta College Astha Ahuja.
“There was no literature on the topic when I wrote my book, E-commerce and GST in India (e-commerce). But now that they have the reference, anyone who wants to investigate this topic can “added Ahuja during the launch.
Ahuja further emphasised the difficulties in taxing online purchases made on foreign e-commerce websites or e-marketplaces when products or services are not physically delivered.
She gave the example of an Indian customer purchasing music from a foreign e-marketplace and paying for it online.
Because the international e-marketplaces do not have a permanent base here, it is impossible to tax these transactions, Ahuja continued.”Since e-commerce transcends national boundaries, there are challenges as the seller and buyer belong to different tax jurisdictions. Hence, need to consider which tax principle to be applied,” she said.