Trading Activity

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PRASAD (Querist)
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09 June 2010 Dear All,

Is it possible that a manufacturing unit can perform its trading activity from its own manufacturing premises/one shed.

If can be done under what rule?
whether this is supported by Excise?

As I had come to know that Manufacturing Premises & Trading premises to be different and if in same plot than should have a permanent partition & too have different entry and exit point.

Pl. guide its URGENT !!!!!!

thanks & regards

Prasad Kurde

ANIL JANGID

ANIL JANGID (Expert)
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11 June 2010 NEED TO TAKE REGISTERATION OF FIRST STAGE DEALERS FROM CENTRAL EXCISE.

PRASAD

PRASAD (Querist)
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11 June 2010 Dear All,

I want to know that is it possible to perform manufacturing & trading activity under one shed.

later comes the part of registration, first all lets clear the above matter.

rgds
Prasad

ADITYA

ADITYA (Expert)
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11 June 2010 You can do trading activity from the same premises provided your TRADED GOODS should be different from the Raw material, Semi finished, Finished Goods.

In case if you want do trading in the same items, you have to take separate place to avoid mixing of Cenvatable as well Traded Goods.

PRASAD

PRASAD (Querist)
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14 June 2010 My Dear, You say that

"trading activity can be done from the same premises provided your TRADED GOODS should be different from the Raw material, Semi finished, Finished Goods"

Ok now about the registration part;
excise People will'nt provide registration trading for the same premises which is already taken for manufacturing unit.

Definately my Manufacturing registration will not do? Now then How do i register

Pl. help its URGENT

rgds
Prasad

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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02 August 2025 This is a classic issue faced by many manufacturers who want to do trading alongside manufacturing under the same roof. Let me break it down clearly based on your query and the Excise (now GST) regime in India.

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## 1. **Can manufacturing and trading be done from the same premises?**

### Yes, but with important conditions:

* **Traded goods must be different from the manufactured goods (or raw materials/finished goods).**
* If you want to trade in the **same goods you manufacture**, you **need a separate premises** for trading to avoid confusion between manufactured and traded stocks.
* If it’s the **same premises**, there should be a **clear physical separation (permanent partition)** and **separate entry/exit points** to ensure audit and stock clarity.

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## 2. **What about Excise Registration?**

* Under the **Central Excise Act (pre-GST era)**, manufacturers had registration linked to the manufacturing premises.
* Trading goods were handled by **first-stage dealers**, who also needed separate registration.
* **Excise authorities generally do NOT allow trading activity registration in the same premises as manufacturing** if it involves the same goods.

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## 3. **How to register for trading activity if trading and manufacturing are under one roof?**

### Options:

| Scenario | Registration Requirement |
| -------------------------------------------- | ----------------------------------------------------------------------------------------------------------- |
| Trading in goods different from manufactured | Can use same premises, one Excise registration for manufacturing + separate dealer registration for trading |
| Trading in goods same as manufactured | Need separate premises for trading & separate dealer registration |

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## 4. **Practical Suggestions**

* For **excise & now GST compliance**, maintain **separate books and stock registers** for manufacturing and trading.
* If **traded goods are same as manufactured goods**, better to have **separate premises** or at least **separate GST registrations** under different locations.
* Always consult the **local Excise/GST office** as interpretations can vary.

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## 5. **Under GST Regime (post July 2017):**

* Excise has been subsumed under GST.
* GST registration is **location-specific**.
* You can have multiple registrations for different business verticals or premises.
* For **trading and manufacturing in same premises but different goods**, single registration may suffice.
* For **same goods**, separate GST registrations with separate premises advisable.

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## **Summary Table**

| Activity | Same Premises Allowed? | Registration Needed |
| ----------------------- | ------------------------------ | ------------------------------------ |
| Trading different goods | Yes (with physical separation) | Single or multiple GST registrations |
| Trading same goods | No (need separate premises) | Separate GST registrations required |

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If you want, I can help draft a letter or application for Excise/GST authorities explaining your setup and seeking clarification or permission.

Would that help?

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