Your purchase on a foreign website can attract the taxman

Is this a part of 'Make in India'?

The sad part is, next elections will see no party getting as large a majority and everything will boil down to alliances and @#$-licking. We'll be back to the usual horse-trading of important cabinet posts to sate the egos of our mp's.

anyway, from what i read online it seems that there is no provision to pay this tax even if you wanted to. some clarifications are expected from the it dept.
 
Did Amazon contact you or the courier?
Amazon.

And when was this?
On the Amazon.com website. They now have a small KYC text-box with the address fields.

Before the item left the US or after it landed in India?
There was a note on one of the checkout pages saying that I need to update my address with a KYC number. I did it immediately after ordering. Not sure what they will do if you do not enter it.
 
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