The government will hold talks with Chinese e-commerce companies such as AliExpress, Club Factory and Shein over evasion of duties on gifts, Business Standard reports.

The meeting has been called by the Central Board of Indirect Taxes Customs (CBIC) and will have representation from Amazon, Flipkart, FedEx and DHL.

At present, overseas gifts and trade samples up to Rs 5,000 and 10,000, respectively, are exempt from customs duty.

“We are examining policy level solutions to the issue of misuse of ‘gifts and samples’ provision and ‘low value import’ route under the customs law. Already Mumbai, Bengaluru and Delhi ports have cracked down on such shipments,” a government official told the paper.

Moneycontrol could not independently verify the story.

The government is considering placing an annual limit on the number of gifts and samples a person can receive from abroad, the report said.

Officials are also examining the option of a central registration system, where foreign e-tailers can file their returns, the report said.

“Pre-payment by customers is an option. A flat customs plus Integrated Goods and Service Tax (IGST) rate, mandatory integration between payment gateways like United Payment Interface (UPI), Bhim, Aadhaar Pay and the customs systems such that an id can be generated to track the payment and consignment,” Sachin Taparia, Chairman of LocalCircles, told the paper.

The government is also considering placing a levy as high as 50 percent on goods ordered from Chinese e-commerce marketplaces, The Economic Times reported in July.

Published On : 22-08-2019

Source : Money Control

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