Warehousing plays a crucial role in the logistics and supply chain operations of businesses, especially for e-commerce sellers. An important aspect of warehousing is the concept of the Additional Place of Business (APOB). In this blog, we will explore the role of APOB in warehousing and its significance for businesses.
What is Additional Place of Business (APOB)?
The Additional Place of Business (APOB) refers to any location, apart from the principal place of business, where business activities are conducted. It encompasses branches, warehouses, godowns, factories, offices, or any other establishment. These additional places of business are explicitly listed in the GST registration certificate.
In the context of e-commerce sellers, APOB specifically pertains to warehouses like Amazon and Flipkart fulfillment centers, where products are stored. These warehouses serve as crucial hubs for inventory management and order fulfillment in the e-commerce supply chain.
What is the role of APOB in warehousing?
The role of APOB (Additional Place of Business) in warehousing is crucial for e-commerce sellers. APOB registration is mandatory for accessing warehouses operated by platforms like Amazon, Flipkart, and others. According to GST laws, sellers must be GST registered in the state where they conduct business activities. The address used for GST registration is known as the principal place of business, and any other location where business activities are conducted is considered an additional place of business.
When an e-commerce seller stores their inventory in a warehouse, they are conducting business activities there. Therefore, all places where business activities occur, including both the principal place and additional places of business, must be registered in the GST. The APOBs, along with the principal place of business, are mentioned in the GST certificate.
When a seller approaches a platform like Amazon to store products in their warehouse, Amazon requires the GSTIN (Goods and Services Tax Identification Number) of the respective state. If the seller doesn't have GST registration in that particular state, they won't be granted access to the Amazon warehouse. The same applies to other e-commerce operators like Flipkart, JioMart, Meesho, and others.
To store inventory in a specific state, sellers must first obtain GST registration in that state. Once they have the GST registration, they can approach Amazon or other platforms. The platforms will then provide the necessary documents for APOB registration for all the fulfillment centers (FCs) where the seller intends to store inventory. The seller needs to add those FCs as additional places of business in their GST registration. The GST officer processes the application and grants approval. After receiving approval, the seller is permitted to store their inventory in the designated warehouses added as additional places of business.
What are the benefits of APOB registration?
- Gain Access to FCs: APOB registration allows ecommerce sellers to access FCs present across multiple states, which enable them faster product delivery.
- Expansion of business operations: APOB registration enables businesses to establish and operate multiple locations within a state, allowing them to expand their market reach and accessibility.
- Compliance with GST regulations: APOB registration is essential for businesses to demonstrate their physical presence and operational activities in various states, as it is reflected in their GST Registration Certificates. This ensures compliance with local tax laws and avoids any penalties.
What are the required documents for APOB registration?
- NOC for APOB provided by Amazon India on their website.
- Copy of Amazon’s FC or warehouse rent/lease agreement and property tax receipt.
- Latest electricity bill of the FC.
- Fulfillment Center’s photographs.
What is the process of APOB registration?
Here is a step-by-step guide on how to do APOB registration:
- Log in to the GST portal.
- Click on the "Services" tab.
- Select the "Amendment of Registration Core Field" option.
- Click on the "Additional Place of Business" tab.
- Click on the "Add New" button.
- Enter the details of the additional place of business, such as the address, proof of ownership or occupancy, and bank account details.
- Click on the "Save" button.
- Repeat steps 5-7 for each additional place of business.
- Click on the "Continue" button.
- Complete the verification process with DSC or EVC.
In summary, the Additional Place of Business (APOB) is a crucial aspect of warehousing for e-commerce sellers. APOB registration is mandatory to access warehouses operated by platforms like Amazon and Flipkart. It allows sellers to store their inventory in different locations, enabling faster product delivery and expanding their business operations. APOB registration ensures compliance with GST regulations and demonstrates a physical presence in multiple states. By following the necessary steps and providing the required documents, sellers can add additional places of business to their GST registration and optimize their warehousing operations.