New Delhi: GST authorities are working on a mechanism to deal with tax rationing and registration issues related to shared warehouses created by e-commerce companies, where multiple suppliers store their goods for final delivery, an official said. Are.
The issue of taxation for warehouses has come to the fore after multiple suppliers geo-tagged the same warehouse as their 'additional place of business' under the Goods and Services Tax (GST) rules.
"We are working to see whether the 'shared workplace' or 'co-working space' concept can be implemented for warehouses built by e-commerce companies to store goods from multiple suppliers," the official said. May go."
Under the Goods and Services Tax (GST) law, suppliers of e-commerce platforms store their goods in a common warehouse. However, suppliers are required to show the warehouse as an additional place of business in their GS registration.The official said that when multiple taxpayers register at the same warehouse, the geo-tag shows the same address for all. This sends a signal to the TA officer that multiple taxpayers are located at the same location and may lead to fraudulent registration.
The second issue is that a warehouse where multiple suppliers store their goods should not be held responsible for the default of any one supplier. Additionally, there is a risk that tax authorities may hold e-commerce operators themselves responsible for such risks, which could potentially impact their businesses. ,the official added.The issue of registration of warehouses built by e-commerce companies was discussed between central and state GST officials in a meeting earlier this month.
"It is currently in the discussion stage. Whether the shared workplace concept can be implemented for e-commerce warehouses will be discussed in the LA committee and then presented before the GST Council," the official said.
The law committee under the GST Council comprises officials from central and state taxes.
Rajat Mohan, executive director of Moore Singhi, said the growth of e-commerce has created a need for many companies to maintain shared warehouses for multiple suppliers, with some facilities accommodating thousands of suppliers.GST authorities have recently implemented geo-tagging, which will require taxpayers to provide geo-tags for all registered premises. This allows tax authorities to trace the exact locations of registered taxpayers.
Mohan said, “The scenario of multiple taxpayers showing the same address can lead to unnecessary scrutiny for both the taxpayers operating within these warehouses and the companies that manage them. This presents a significant challenge that requires solutions at the industry level.” "Grants."
He said GST authorities should consider implementing a mechanism to separately identify warehouses and train the tax systems to avoid matching scores of taxpayers of these facilities with those of suppliers registered there.“A sophisticated tax system should enable geotags to clearly represent warehouse and individual taxpayers, facilitating more accurate risk assessment by tax authorities and reducing undue harassment,” Mohan said.
The issue of taxation for warehouses has come to the fore after multiple suppliers geo-tagged the same warehouse as their 'additional place of business' under the Goods and Services Tax (GST) rules.
"We are working to see whether the 'shared workplace' or 'co-working space' concept can be implemented for warehouses built by e-commerce companies to store goods from multiple suppliers," the official said. May go."
Under the Goods and Services Tax (GST) law, suppliers of e-commerce platforms store their goods in a common warehouse. However, suppliers are required to show the warehouse as an additional place of business in their GS registration.The official said that when multiple taxpayers register at the same warehouse, the geo-tag shows the same address for all. This sends a signal to the TA officer that multiple taxpayers are located at the same location and may lead to fraudulent registration.
The second issue is that a warehouse where multiple suppliers store their goods should not be held responsible for the default of any one supplier. Additionally, there is a risk that tax authorities may hold e-commerce operators themselves responsible for such risks, which could potentially impact their businesses. ,the official added.The issue of registration of warehouses built by e-commerce companies was discussed between central and state GST officials in a meeting earlier this month.
"It is currently in the discussion stage. Whether the shared workplace concept can be implemented for e-commerce warehouses will be discussed in the LA committee and then presented before the GST Council," the official said.
The law committee under the GST Council comprises officials from central and state taxes.
Rajat Mohan, executive director of Moore Singhi, said the growth of e-commerce has created a need for many companies to maintain shared warehouses for multiple suppliers, with some facilities accommodating thousands of suppliers.GST authorities have recently implemented geo-tagging, which will require taxpayers to provide geo-tags for all registered premises. This allows tax authorities to trace the exact locations of registered taxpayers.
Mohan said, “The scenario of multiple taxpayers showing the same address can lead to unnecessary scrutiny for both the taxpayers operating within these warehouses and the companies that manage them. This presents a significant challenge that requires solutions at the industry level.” "Grants."
He said GST authorities should consider implementing a mechanism to separately identify warehouses and train the tax systems to avoid matching scores of taxpayers of these facilities with those of suppliers registered there.“A sophisticated tax system should enable geotags to clearly represent warehouse and individual taxpayers, facilitating more accurate risk assessment by tax authorities and reducing undue harassment,” Mohan said.
