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Why eCommerce Sellers should know about Entry Tax / Octroi Charges ?

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Since our State Governments has to ensure the overall development of the State, they are supposed to levy taxes on the Customers, Traders and Sellers.
Among various Taxes, Entry Tax and Octroi are commonly levied taxes on the goods moving from one state to other. Some state government levy Local Body Tax(LBT) called as OCTROI when your products enters the state. These charges are applicable in Mumbai specifically and the charges fluctuate as per the government regulations. Generally the Octroi varies from 3% to 9% of the invoice value of the product. The Octroi charge is payable by the recipient at the time of delivery or at the nearby check post. The courier company will collect the Octroi amount from the recipient at the time of delivery. Bigger companies in the industry like Flipkart, Amazon typically absorb these charges and pay the courier companies directly to avoid delays in the shipment. Smaller companies / Individual eCommerce Sellers don't typically have this advantage as…