“CBIC Reaffirms:Separate GST Registration Mandatory for Warehouses in Other States”

Map of India showing states with GST registration marked in red.

whether an importer having its principal place of business in one State but warehouses or cold storages in another State must obtain separate GST registration in that other State.

Legal Position

Section 22(1) of the CGST Act, 2017 provides that:

Every supplier shall be liable to be registered in the State or Union territory from where he makes a taxable supply of goods or services if his aggregate turnover exceeds the threshold limit.

Further, Section 2(85) defines “place of business” as:

any place (a) from where the business is ordinarily carried on, and includes (b) a warehouse, godown or any other place where a taxable person stores his goods or provides or receives goods or services; or (c) any place where business records are maintained.

Application of the Rule

When an importer stores goods in a warehouse (including a cold storage) located in another State — say, Haryana — and supplies goods directly to customers from that warehouse, such location qualifies as a place of business under Section 2(85).
Therefore, the person is making taxable supplies from that State within the meaning of Section 22(1).

It does not matter whether:

  • the warehouse is owned or operated by a third party, or
  • the entity’s head office or principal place of business is elsewhere (e.g., Delhi).

Since the goods are dispatched to customers from the warehouse, that place becomes the origin of supply, making the entity liable for separate GST registration in that State (Haryana).

Compliance Implications

  1. The establishments of the same PAN in different States are treated as distinct persons under Section 25(4).
  2. Hence, transfer of goods from the principal State (Delhi) to the warehouse (Haryana) will be treated as a supply between distinct persons — taxable under Schedule I, even without consideration.
  3. Such transfers must be supported by a tax invoice and e-way bill, and tax shall be paid accordingly.
  4. Supplies made within the same State as the warehouse will attract CGST + SGST, whereas inter-State outward supplies will attract IGST.
  5. Services of cold storage (if availed from a third party) are treated as services relating to immovable property — thus, the place of supply is where the warehouse is located, per Section 12(3)(a) of the IGST Act, 2017.

Conclusion

Accordingly, a separate GST registration is mandatory in the State where the importer’s warehouse or cold storage is located if supplies are made from that location.
The warehouse constitutes a distinct place of business as per Section 2(85), triggering the registration requirement under Section 22.

⚖️ Relevant Legal References

  • Section 2(85) – Definition of “place of business”
  • Section 22(1) – Liability for registration
  • Section 25(4) – Distinct persons in different States
  • Schedule I, Para 2 – Supply between distinct persons (without consideration)
  • Section 12(3)(a), IGST Act – Place of supply of services relating to immovable property

Source: The Hindu Business Line