FISME wants ecommerce warehouses registered as additional place of business

The Federation of Indian Micro and Small & Medium Enterprises (FISME) has written to the government ahead of the GST Council’s meeting on Friday, urging it to permit MSMEs to register ecommerce operators’ warehouses across states as additional place of business (APoB) to get business through the online retail route.

“Based on the home state PPoB (principal PoB), sellers can register an ecommerce operator’s warehouse as an APoB and conduct business,” the body said in a letter to minister of state for finance Anurag Thakur. Industry experts said online sales are now enabling survival opportunities instead of being an additional revenue stream.

FISME also sought that the 18% GST rate slab be applicable to all auto parts and components. “Having one rate for all the parts and accessories will save retailers and small producers of harassment and greatly ease transactions,” said the letter. The industry body also sought resolution of input tax credit (ITC) accumulation, which has a considerable impact on MSMEs operating on low capital margins. The issue is more acute for sectors facing inverted GST structure, it said.

“ITC may be allowed to be converted into tradable instruments (secured) to unlock capital; this will unlock working capital as well as free liquidity in the market,” the body said.