Relief for Non-resident E-commerce Operators: Abolishing the Equalisation Levy

The Hon’ble Finance Minister has proposed a welcome change in the Union Budget 2024 by abolishing the Equalisation Levy (EL) of 2% on e-commerce operators, which was introduced under the Finance Act, 2020.

Existing provisions and hardships faced

Under the existing provisions, effective 01 April 2020, EL @ 2% (EL 2.0) was levied on the amount of consideration received or receivable by an e-commerce operator from e-commerce supply or services. An “e-commerce operator” refers to a non-resident who owns, operates, a digital or electronic facility or platform for online sales of goods or services, or both.