It moved the HC after the Gujarat Government amended the law to levy entry tax on goods purchased through e-commerce portals, apparently to provide a level-playing field to the traders and retailers in the state. The Gujarat Tax on Entry of Specified Goods into Local Areas (Amendment) Bill, 2016, was passed on March 31. Now 15 percent entry tax is levied on the online purchases.
Flipkart's contention is it does not sell any product itself but only provides an online platform to manufacturers/traders, so the tax is unjustified.
The new law amends the word "importer" to cover those who "bring or facilitate to bring any specified goods for consumption, use or sale in Gujarat from any part of the country using online platforms."