India Equalisation Levy

India Equalisation Levy

India Equalisation Levy 

The Indian government has expanded the scope of its existing Equalisation Levy (EL), which was first imposed in 2016, to include an additional 2% levy on all “e-commerce supply or services (including facilitation) by an e-commerce operator.”

We believe that the expanded EL will: i) seriously and negatively impact Indian SMEs and consumers; ii) dampen India’s digital exports’ potential if/when other countries retaliate with a similar levy; and iii) blindside SMEs due to its broad and discretionary nature.