The e-commerce companies are seeking clarity from tax authorities for the registration process under the goods and services tax (GST) regime for their suppliers with the rapid sprouting up of dark stores as part of their quick commerce strategies.
A dark store is a retail store (e.g., groceries, home goods retailers, and clothing brands, etc.) converted into a micro-fulfilment center, and its layout is organized and optimized for retail fulfilment for online orders. These retail distribution outlets are not open to shoppers, which provides more space store inventory and accurately fulfil orders for customers. Once the order is placed, items can be picked and packed in the dark store and either shipped or picked up by the customer locally. This provides retailers with options for local and all customers.
To register an additional place of business, GST registered entities have to register on the GST portal and provide documents such as rent agreement or electricity bill as proof of address, along with other documents such as authorisation letter and photos of the additional place of business.
The issue is understood to be under discussion with trade and industry representatives also taking it up with GST authorities. The matter may also be examined by the Central Board of Indirect Taxes and Customs. To curb the problem of fake registrations and evasion of taxes, GST officials have over the last one year tightened norms for registration of businesses to combat tax evasion.
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