Ecommerce operators face problem in GST drive to check fake registration

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Key Points

The pan-India drive against fake GST registration has created problems for e-commerce companies which maintain virtual offices in various states with minimal staff and no books of accounts...

Talking to PTI, MakeMyTrip Group Vice President -Taxation Tajinder Singh said that the GST officials should enquire with the head offices with regard to virtual offices before categorising the state registration as a fake entity for non-production of books of accounts...

"We maintain virtual offices in states ...in this fake registration drive the field offices have mistook these offices as fake registration, however we were only using these offices for tax payment, there was no ITC flow or fraud being committed using those registration..

Because of this, lot of registration were blocked for compliance purpose and that created problems for us," Singh said.. Centre and state GST authorities have on May 16 launched a two-month drive to check fake registration under Goods and Services Tax (GST)..

On the issue faced by e-commerce companies, Central Board of Indirect Taxes (CBIC) Member GST Shashank Priya said one thing we have been advising is that wherever you have indicated as a virtual office, the line of distinction between a fake registrant and an e-commerce operator is very thin...

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