The Commerce Ministry today said that online transactions of goods adhering to the e-commerce norms will be entitled to duty benefits under the Merchandise Exports from India Scheme (MEIS).
Defining "e-commerce" for the purpose of MEIS, the Director General of Foreign Trade (DGFT) said that e-commerce means buying and selling of goods and services, including digital products, conducted over digital and electronic network.
"For the purpose of MEIS, e-commerce shall mean the export of goods hosted on a website accessible through the internet to a purchaser.
"While the dispatch of goods shall be made through courier or postal mode, as specified under the MEIS, the payment for goods purchased on e-commerce platform shall be done through international credit/debit cards" and as per a RBI circular, the DGFT said.
Under the MEIS, the government provides duty benefits at 2 per cent, 3 per cent and 5 per cent depending upon the products and country.
With the increasing use of internet across the globe, large amount of trade is also conducted through online platforms.
Commenting on the issue, traders body CAIT said that instead of defining "retail trade", the government is rushing to define e-commerce trade.
In a statement, it said "CAIT is unable to understand the hurry of the government in matters of e-commerce and lack lusture attitude towards retail trade".
CAIT also asked for a national trade policy for retail trade and a separate ministry for internal trade.
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