Sale in transit

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K. Shukla (Querist)

29 November 2018 A prop. of firm and a regd. dealer under the GST in Delhi, has purchased the goods lying at Chennai from a party of Maharashtra on as is where is basis for Rs.200 lac. The sale agreement has drafted and a consolidate bill Rs.200.00 lac has issued by seller and IGST charged. Now I am dismantling the unit in chennai later on to sale the dismantled goods.

Should the prop/firm take another GST no. in Tamilnadu or can sale the goods on existing GST number of Delhi?

Saket Agarwal

Saket Agarwal (Expert)

30 November 2018 Hi. When the Delhi party became the owner of the goods lying in Chennai, were the goods kept at a place which was owned/rented by the Delhi party? If yes, then Delhi party has a place of business in Chennai. If later the sale of goods is being made from Chennai, then it would become a supply from Chennai. Registration in Chennai would become compulsory.

If the Delhi party was keeping the goods at a location owned/rented by the Mumbai party, even then the situation won't change. Registration will be required. However, in this case the registration has to be of a Casual Taxable Person as the Delhi party does not have a fixed place of business in Chennai.

If the Delhi party is not going to do supplies from his place of business in Chennai, then he can de-register in situation 1 above.

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