India closes import duties e-commerce exemption

India has withdrawn from 12 December 2019 the ₹5,000 (approximately €63) import duties exemption threshold on ‘gifts’ being shipped to Indian consumers. Previously, ‘gifts and samples’ below this value were imported without any duties charge.

This simplification for person-to-person shipments has allegedly been abused by foreign marketplaces, especially shopping apps from China, to sell tax-free to Indian consumers. The aim is to level the tax playfield for Indian online and traditional retailers who must charge tax of up to 60% on all their sales.

Marketplaces must register with the Ministry of Commerce by June 2020 to start reporting the transactions.