There is an urgent need for new IT security solutions/models in the aftermath of e-business and worries regarding its impact on tax collection. E-commerce is a method of doing business or creating a contractual relationship between customers and sellers without any of them having to meet physically. Business has undergone a revolution due to this new method of doing business, which is quickly taking over as the standard method for doing business around the world. The taxing authorities all around the world have been challenged by this. Our attention is focused on the problems with online transaction taxation. This study will first discuss the tremendous surge in E-commerce activity in India before discussing the global initiative for E-Commerce taxation. Then, in relation to E-Commerce Transactions, we will examine the existing laws in India, in particular, the Income Tax & VAT Act and the Goods and Service Tax.