The Goods and Services Tax (GST) department has served notices to over 50 importers of spices, dry fruits, processed food and poultry seeking additional payments of an estimated Rs 1,000 crore.
The additional tax demand is over the storage of products at warehouses different from the actual place of supply by importers of perishable agricultural commodities.
The importers were warned of cancellation of registration for failure to register temporary storage warehouses under GST provisions that require registration of place of supply.
The importers use temporary warehouses close to a port and specialised cold storage units for further supplies to domestic customers.
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