Key Points
The Goods and Services Tax (GST) authorities have served notices to about 50 importers of spices, dry fruits, processed food and poultry over storage of products at warehouses different from the actual place of supply seeking additional tax payment of an estimated Rs 1,000 crore, said people with knowledge of the development...
Importers of perishable agricultural commodities usually store the products at a warehouse close to a port or at a specialised cold storage unit, from where supplies are later made to domestic customers...
Tax authorities want importers to register these temporary storage warehouses under GST, citing provisions in the GST law that require registration of place of supply...
A large number of importers, mostly MSMEs (micro, small and medium enterprises), are facing this issue as the law demands that the address on the bill of delivery and bill of supply should be identical for claiming input tax credit, which is not practical, an importer of spices told ET on condition of anonymity...
However, as per the authorities, the trader cannot claim input tax credit and must get registration in the state for the warehouse from where the supply is made.. Tax authorities now want traders to pay additional IGST in such cases, treating the warehouse as an additional place of business..
