Gujarat’s GST organization wants a tax on midcaps | Ahmedabad News

AHMEDABAD: Some 300 International Service Entities (ISEs), including search engines and e-commerce companies that provide services to Indian customers, have not paid taxes on their transactions in India, say members of the GST Federation. A statement on this has been sent to the state’s commercial tax commissioner, seeking to tax ETIs.
The representation states, “ISEs can provide search results for free, but the platforms not only record users’ personal information, including their geographic location, but also sell it to marketing and advertising companies. Therefore, they should be taxed.
According to members of the federation, any business, regardless of location, which provides goods or services to Indian customers is liable to tax in India. The representation also cited several provisions of the GST Act by which transactions which are apparently of a non-financial nature may also be taxed.
The representation also quoted the “GST System Module MIS 3.11 Report” and said, “No such company has paid a single penny in India. Even if the GST department has all the information on these operational ISEs, no action has yet been taken.
A senior official in the commercial tax department said, “Even though user information is sold to marketing companies, as it is claimed; unless there is evidence of such transactions, the entity concerned cannot be taxed.

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