Alibaba warns infringing sellers, evading taxes may lead to store closure in India

Soon after the India government stern measure on goods being sent to India in the guise of gifts by Chinese online retailers, Alibaba has warned sellers of practicing any illegal activities such as evading taxes through false descriptions on items may lead to shut down of the store.

Alibaba-owned online retailer AliExpress said it respects local regulations and laws and does not support any illegal activities by sellers on its platform. The firm penalises sellers if their items contain descriptions to evade taxes.

Any infringing sellers found on the platform face penalties including store closure, TOI report said quoting spokesperson of the firm.

The firm had made its position clear on this to its sellers through agreements on the platform.

Earlier, the Indian govt had has imposed a clampdown on shipments of goods from Chinese e-commerce platforms to India as gifts.

Not paying duties and taxes brings down the prices of goods significantly. Currently, gifts up to Rs 5,000 for personal use are exempted for customs duties. This has also led to significant down in duties and taxes collection.

The move comes after noticing a violation of domestic law and a rise in the number of products from China coming in as gifts.

Several small traders and domestic e-tailers had complained against e-tailers from China such as Club Factory, Shein and Aliexpress, who are taking advantage of the exemption from customs duties. Products on these platforms are over 50 per cent cheaper than Indian e-comm sites.

In last December, the Mumbai customs department had noticed multiple consignments of goods in the guise of gifts. It also found address used in most cases as fictitious.