Published Paper Details:

The honorable Delhi High Court had an influx of Petitions being filed by Uber India Systems Private Limited and Rickshaw driver's union, IBIBO group with Make My Trip, and several others regarding a central tax notification issued on 18-11-2021 . Its clauses namely 1(i)and 2(i) of the same were being challenged. It was contended against the Union of India that the impugned notification in question is ultra vires to the constitution as well as sections 9(5) and 11 of the Central Goods and Service Tax Act 2017 . This case happened in the capital of our country incited by a former state-issued tax notification on the supply of services dated 28-06-2017 which provided unconditional exemption from payment of GST in case of a supply of services by auto-rickshaw passengers or by any stage carriages other than air-conditioned ones, the new notification of 2021 took that exemption away for intermediary involved Rickshaws. This controversial case left lasting impressions on the attendees of the arguments because it was challenging as a case law that could potentially determine the face of e-commerce adjudication and governance in India with great minds butting heads at both ends of the conundrum. E-commerce or electronic commerce is known for the electronic or online sale, purchase, and rent of products or services online. However, due to the fast-growing IT interception into the physical market, it became more and more difficult for conventional tax laws to keep tabs on tax evasions or the generation of malicious income through the same. Several tax laws under both income tax and GST impact E-commerce transactions. To avoid such non-taxation of transactions and get tax benefits, the central government is adding new sections to both the direct and indirect taxation regimes. The normal trend of the existing taxation laws against the e-commerce sector is such that when adding the credit amount of sales of products, services, or both to an e-commerce participant as well as an e-commerce participant should make payment. E-commerce operators are requisitioned to deduct 1% TDS on the gross number of sales or services or both. The key cause for ambiguity in the regime is due to a distinction to be drawn between taxable transactions and narrowing down on who will be liable for paying tax on the then-generated income. And in the meanwhile, also protecting market competition and the interest of the consumer. Provisions under the Income Tax Act 1961 on e-commerce taxation were a new dawn in the conventional taxation laws primarily forming provisions in the Income Tax Act and GST regulations on e-commerce transactions. There is extensive bifurcation on equalization levy and resident and non-resident levy and levy on online advertising in the Act. One of the fundamental additions was to define E-commerce supply and E-commerce -operators that were given life in the Finance Act of 2016. A particular review of all these additions shows us coping with ambiguity and lacunas which need to be reviewed and extensively researched so that the detriments to a smooth-running taxation system in an ever-changing and challenging economy can be met. The method of research would be a doctrinal approach and extensive case study of the case Uber India v/s Union of India 2023 SCC Online Del 2216 decided on 12-04-2023 Also an extensive review of the Income Tax Act of 2016 and additional notifications published in GST formed to adopt E-commerce into taxable-jurisdiction.