The Central Board of Indirect Taxes and Customs (CBIC) has recently issued a clarification addressing the requirement of separate GST registration for importers and traders who store goods in warehouses or cold storage facilities outside their principal place of business.
The advisory, issued under File No. CBIC-20016/75/2025-GST/1025 has been released in response to representations from trade associations, including the Kirana Committee Delhi, seeking explanations on whether businesses operating from Delhi must register in Haryana when storing goods in a third-party warehouse located there.
Essential Takeaway from CBIC Advisory.
- Compulsory seperate GST Registration
CBIC has confirmed that under Section 22 of the CGT Act 2017, any person making taxable supplies from a state must obtain GST registration in that State if the aggregate turnover exceeds the prescribed limit. Even where goods are kept in third-party cold storage facilities, such facilities fall within the definition of a “place of business” under Section 2(85) of the Act. Therefore, a Delhi-based importer storing and supplying goods from Haryana must procure GST registration in Haryana.
- GST Payment and Documentation
The transfer of goods from Delhi to Haryana warehouses requires the issuance of a tax invoice and e-way bill, and GST must be discharged accordingly. Any Supplies made from such Haryana warehouses to customers within Haryana will be treated as intra-state supplies, thereby attracting Haryana CGST and SGST.
- Recognition as Seperate Persons
According to Section 25(4) of the CGST Act, establishments in different States under the same PAN are treated as seperate persons. Therefore, movement of goods between Delhi and Haryana establishments constitutes a taxable supply, requiring invoicing and GST Payment.
- Identification of Place of Supply
Section 10(1)(a)of the IGST Act governs the place of supply, which is determined based on where the movement of goods terminates for delivery. For goods transfer from a Haryana warehouse to customers within Haryana, the supply is intra-state, attracting Haryana’s CGST and SGST.
- Applicability of Cold storage services
Under Section 12(3) of the IGST Act, services related to immovable property—such as
cold storage—are taxable at the place where the property is located. Accordingly, if the
cold storage facility is in Haryana, the applicable taxes will be Haryana CGST and SGST.
Bussiness Impact and Compliance Considerations
- The explanation directly affects importers, FMGC distrubutors, and e-commerce operators
who use multi-state warehouse models. Bussiness must ensure:
- There should be seperate registration in each State where goods are stored and supplied.
- There should be proper records for all inter-state stock transfers.
- Under Section 35 and Rule 56 of the CGST Rules,2017, bussiness are required to adhere to return filing and record maintenance requirements.
- Failure to adhere may lead to non-compliance penalties and disputes over the place of supply .
Conclusion
Businesses operating across multiple States must recognise that warehouses and cold storage facilities in States other than the principal place of business constitute a “place of business” for GST purposes. Proper registration, documentation, and tax compliance are essential to avoid legal complications and penalties.
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