E-commerce is fast gaining traction in today’s world. In simple terms, e-commerce can be described as the conduct of any commercial activity using the Internet as a medium. The scope of e-commerce is dynamic and consistently expanding. The online marketplace business model has been the most successful model in India, given the foreign direct investment (FDI) and regulatory norms currently in existence. Therefore, this study focusses more on online marketplaces while studying the e-commerce sector in India. Multiple indirect taxes are currently levied on transactions in India. Some taxes are levied and collected by the central government, while others are collected by state governments. Furthermore, due to the dynamic and complex business models in which e-commerce players operate, the treatment of various e-commerce transactions under indirect taxes is fraught with ambiguity and disputes.