Ground-Level Problems in E-Commerce Taxation in India

In today’s world, everything happens online. People study through apps, do work from home, pay bills online, and even watch movies through OTT platforms. But the Indian government charges 18% GST on all digital services such as Netflix, Amazon Prime, Udemy, Spotify and Google Drive. The justification given for this is that digital business is developing very quickly in India. But the effect of this tax on the general public has never been investigated before. To do so, a mini-survey was conducted on more than 90+ people in Tamil Nadu between 30th July and 3rd August 2026. The respondents of this survey were students, salaried workers, businessmen and housewives. The results obtained are alarming. More than 60% of the respondents reported that their monthly spending on digital platforms increased by 20-30% due to GST. A middle-class family paying through 3-4 apps spends approximately Rs. 3000 extra every year just on tax payments. As a result, 40% have cancelled subscriptions, 50% started sharing accounts, 35% shifted to free apps, and 20% confessed to piracy. The major grievances were ‘price is too high’ and ‘too many ads after payment’. Only 55 per cent knew that 18 percent GST is imposed. The billing process is also unclear. Students and lower-income sections were affected the most. 65 per cent feel that 5 percent or 10 percent GST should be levied on digital services. 30 percent want education and internet to be exempt from taxes. It has become necessary for everyone. The flat 18 percent tax rate is not feasible and leads to piracy.