Separate GST Registration Mandatory for Importers with Out-of-State Warehouses

Separate GST Registration Mandatory for Importers with Out-of-State Warehouses

The article clarifies that importers who store their goods in warehouses located in states other than their primary state of GST registration are mandated to obtain separate GST registration in each of those states.

Key Implication of the Rule

• Distinct Business Establishment: Under the Goods and Services Tax (GST) law, having a warehouse (which constitutes a place from where business is conducted) in a different state makes that location a “distinct person” and a separate place of business.
• Mandatory Separate Registration: The importer must treat the operations in each state as a separate entity for compliance purposes and obtain a unique GSTIN for every state where they store goods, regardless of whether any sale occurs from that location.
• Compliance and Tax Liability: This requirement is crucial for ensuring proper compliance, particularly regarding:
  • Stock Transfer: Ensuring correct taxation and documentation for the transfer of goods between the importer’s principal place of business and the warehouses.
  • Tax Audits: Facilitating jurisdiction-specific tax assessments and audits by the relevant state tax authorities.
  • Input Tax Credit (ITC): Correctly claiming and utilizing ITC for expenses incurred at the warehouse locations.