This study explores the regulatory framework and challenges in Taxation of Ecommerce Transactions in India. The taxation of e-commerce transactions in India presents a multifaceted landscape shaped by regulatory frameworks designed to address the complexities of digital commerce while ensuring revenue compliance. India's taxation of ecommerce transactions primarily revolves around Goods and Services Tax (GST), which applies to the supply of goods and services online. E-commerce operators and sellers must register under GST if their turnover exceeds prescribed thresholds, enabling them to collect and remit taxes. Additionally, the introduction of Tax Collection at Source (TCS) mandates ecommerce platforms to collect taxes on behalf of sellers, ensuring compliance throughout the supply chain. Income tax implications, including the Equalization Levy on digital transactions, further extend the tax net to foreign companies operating in India. Several challenges complicate the taxation of e-commerce in India. These include the multiplicity of taxes—GST, income tax, and equalization levy—resulting in compliance burdens for businesses, particularly those operating internationally. Classification and valuation issues arise concerning digital goods and services, which lack physical presence, making it challenging to determine tax liabilities accurately.