Regarding goods keeping in other state cold storage

Hi Ashish,

Good question! Here’s the GST perspective on your situation:

Can you keep goods in cold storage in another state (Mumbai) without registration there?

• Under GST law, if you are storing goods in a place other than your registered principal place of business (like cold storage in Mumbai, Maharashtra), you are required to take a separate GST registration in that state.

• This is because having goods in a different state is treated as having a "place of business" in that state under GST rules.

• So, you cannot legally keep goods in Maharashtra cold storage without obtaining Maharashtra GST registration.

Relevant GST Law:

• Section 22(1) of CGST Act, 2017 states that a person making taxable supplies and having business locations in multiple states shall obtain separate registration for each state.

• Place of Business as per Section 2(85) of CGST Act includes "any place where a taxable person carries out business activities." This includes warehouses or cold storages where goods are stored.

• Rule 9(1) of CGST Rules, 2017 mandates registration in each state where a person has a place of business.

Summary:

What if you don’t register?

• If you keep goods in Maharashtra cold storage without registration there, you may face penalties and difficulties in claiming ITC or complying with GST law.

Recommendation:
Apply for GST registration in Maharashtra before keeping your goods in cold storage there.