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
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