E-commerce companies need to register for GST for shared warehousing.

GST Registration: E-commerce companies that sell and distribute goods online also need to register their shared warehouse under GST (Goods and Services Tax). The GST authorities are reportedly working on a system to bring shared warehouses of e-commerce companies under the tax net and deal with registration-related issues. Many suppliers store goods in these warehouses and deliver to customers. In this regard, an official said in an interview to the media: Under the GST rules, the problem has arisen in bringing such warehouses under the tax net after many suppliers have declared the same warehouse as an additional location for their business. While talking to the media that shared warehouses will come under GST ambit, we are taking steps to bring such warehouses under tax ambit. “We are looking into whether GST rules will apply to shared workspaces for warehouses built by e-commerce companies to store goods from multiple suppliers,” he said. Under the GST law, suppliers of goods to e-commerce sites can keep their goods in a shared warehouse. However, suppliers must show the warehouse as an additional place of business in their GST registration. Fraud in GST registration occurs when multiple taxpayers register at the same warehouse, the Jio Tag indicates the same address for all, the official said. This gives an indication to the GST officer that multiple taxpayers are located at the same location and this may be a fraudulent record. A second issue is that a warehouse where multiple suppliers keep their goods cannot be held responsible for any one supplier's defect. Additionally, the GST authorities may hold e-commerce operators responsible for such irregularities, which may affect their business. Hindustan Zinc has given 100% multipacker returns in 50 days, earlier this month it discussed registering warehouses built by e-commerce companies. Discussions were held between central and state GST officials in the meeting. The official said that it is still in discussion stage. Applicability of GST rules to shared workspaces for e-commerce warehouses will be discussed in the legal panel. It will then be placed before the GST Council. The legislative body under the GST Council consists of central and state tax authorities. Go Digit's IPO is likely to be earmarked for May 21. The post E-commerce companies must register GST for shared warehouse appeared first on Prabhat Khabar.