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Reining In The Digital Economy In India: Paving Way For Digitalservice Taxes

G.Poojajanakiram, Sastra Deemed University, School of Law, Thanjavur


The emergence of the digital economy has altered the global taxation environment, forcing governments to develop new methods of obtaining money from digital platforms and services. The Digital Services Tax (DST), a cutting-edge method of taxing that focuses on the income produced by international technology companies, is one such mechanism. The taxation of conventional services, which have a physical place where the service is performed and where the right to taxation originates, is challenged by the intangible character of digital services. As a result, with several suggestions and implementations, the necessity for appropriate legislation about the taxation of digital services has become increasingly apparent. This abstract gives a brief introduction to DST and the implementation of DST in India, the associated challenges, the regulatory framework, and potential ways forward. DSTs are crucial in the modern day because they give governments a way to collect money from digital activities, address concerns with tax justice, level the playing field for companies, fight tax avoidance, and take part in international initiatives to update the international tax system. The significance of efficient digital taxation methods will only increase as the digital economy continues to flourish. This comparative research shows how India has approached and implemented digital services taxes. The global nature of digital taxes emphasizes the significance of continuous international talks and cooperative efforts to establish a more uniform and equal digital tax environment.


Indian Journal of Law and Legal Research

Abbreviation: IJLLR

ISSN: 2582-8878


Accessibility: Open Access

License: Creative Commons 4.0

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​All research articles published in The Indian Journal of Law and Legal Research are fully open access. i.e. immediately freely available to read, download and share. Articles are published under the terms of a Creative Commons license which permits use, distribution and reproduction in any medium, provided the original work is properly cited.


The opinions expressed in this publication are those of the authors. They do not purport to reflect the opinions or views of the IJLLR or its members. The designations employed in this publication and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the IJLLR.

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