If you are an online buyer residing in Telangana, your purchases may be costly going forward. Telangana government had agreed to the proposal of Commercial Taxes department to levy VAT on all online sales. Companies selling their goods to Telangana consumers going forward have to notify their sales list to the state government and pay the required Tax.
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The commercial tax department will also frequently raid the warehouses of the online portals and see if there are any discrepancies. However this is not an easy process as online business had increased by leaps and bounds over the years. The state government is likely to issue a G.O regarding this very soon.
In fact this problem will be solved very soon through the introduction of GST. According to GST, tax have to be paid not in state where the product is manufactured, it has to be paid where the product is sold. With this the states where the items are shipped will get incomes.
