CBIC: Separate GST Registration Mandatory for Out-of-State Warehouses

Issue: To clarify the requirement for obtaining separate Goods and Services Tax (GST) registration in a different state when an importer’s principal place of business is in one state (e.g., Delhi) but they utilize third-party warehouses or cold storage facilities in another state (e.g., Haryana) to store and dispatch goods to customers.

Facts:

• The CBIC issued a circular (F. No. CBIC- 20016/75/2025-GST/1025 dated September 25, 2025) in response to a representation regarding tax registration requirements for third-party cold storage facilities.
• The GST Act defines “place of business” (Section 2(85)) to include warehouses and any location from where business is ordinarily carried out.
• Section 25(4) treats establishments of a person in different States as distinct persons for GST purposes.

Decision:

The CBIC clarified that a business entity must obtain separate GST registration in the second state (e.g., Haryana) if that location (the warehouse or cold storage) is used for the purpose of making outward taxable supplies to customers. The fact that the cold storage is operated by a third party does not alter this legal position if the supply originates from that location.

Key TakeDowns:

• Warehouse as Place of Business: When goods are stored in an out-of-state warehouse and are dispatched from there to customers, that location is deemed a ‘place of business’ for making taxable supplies, mandating separate registration in that state.
• Inter-State Supply Implication: Movement of goods between the registered establishments in Delhi and Haryana (under the same PAN) is treated as a supply between distinct persons under Section 25(4) and is therefore liable to GST (on the transaction value). A tax invoice must be issued for such transfers. * Place of Supply: If a supply originates from the Haryana warehouse and terminates within Haryana, it is treated as an intra-State supply and attracts CGST + SGST of Haryana.
• Compliance Burden: The ruling confirms that maintaining a warehouse in a separate state entails separate compliance obligations, including the filing of returns, maintenance of records at each place of business (Section 35), and the correct discharge of tax liability in the second state.