GST authorities are addressing taxation and registration issues related to shared warehouses maintained by e-commerce companies, where multiple suppliers store their goods for last-mile delivery. Under GST law, suppliers can store goods at a common warehouse, but must show it as an additional place of business in their registration. The geo-tagging of the same warehouse for multiple suppliers has raised concerns about potential fraudulent registration. There is also a concern about holding the warehouse accountable for the default of a single supplier, and the potential impact on e-commerce operators’ businesses. The issue was discussed between Central and state GST officers, and the possibility of implementing a shared workplace concept for e-commerce warehouses will be considered by the law committee and presented to the GST Council. The evolution of e-commerce has led to the need for shared warehouses accommodating thousands of suppliers.
Source A2ztaxcorp
- Join the Linkedin Group on VAT/GST and E-Commerce HERE
Latest Posts in "India"
- Tripura HC: ITC Cannot Be Denied to Bona Fide Purchaser for Supplier’s Tax Default
- Ready-to-Drink Non-Alcoholic Beverages Like Mojito to Attract 40% GST, Rules WB AAR
- Bombay HC: Assignment of Long-Term Industrial Leasehold Rights Not Taxable as ‘Supply’ Under GST
- ITC Not Allowed on Mall Construction for Leasing, Rules Tamil Nadu AAR under GST Law
- Section 74 Cannot Be Invoked for GST Return Mismatches Without Evidence of Fraud or Suppression
