The government has started cracking down on purchases made on Chinese e-commerce platforms, which evaded goods and services tax and customs duty. The IT and customs officials are keeping an eye on such movements of goods and transactions, and now post offices and other courier service providers would also monitor such dubious movements. Recently, the government has also made it mandatory for the Chinese e-commerce portals to register in India.
Gifts received by Indians from a foreign country worth up to `5000 do not attract any taxes. It is alleged that the Chinese retailers such as Club Factory, AliExpress, and Shein are using the law to bypass mandated taxes. Such tax-evading purchases from Chinese online players are estimated to 2 lakh orders, before steps taken by the authorities brought them down to 1.20 lakh units.