The Central Board of Indirect Taxes and Customs (CBIC) has issued a crucial clarification regarding the requirement of separate GST registration for importers and traders who store goods in warehouses or cold storage facilities located in states other than their principal place of business.
The clarification, released through File No. CBIC-20016/75/2025-GST/1025, comes in response to representations from trade associations, including the Kirana Committee, Delhi, seeking clarity on whether businesses operating from Delhi must register in Haryana when storing goods in third-party warehouses there.
Key Highlights of the CBIC Clarification
1. Separate GST Registration Mandatory
CBIC has reiterated that under Section 22 of the CGST Act, 2017, any person making taxable supplies from a State must obtain GST registration in that State if the aggregate turnover exceeds the prescribed threshold.Even if goods are stored in third-party cold storages, such facilities qualify as a "place of business" under Section 2(85) of the Act. Hence, a Delhi-based importer storing and supplying goods from Haryana must obtain GST registration in Haryana.
2. GST Payment and Documentation
When goods are transferred from Delhi to Haryana warehouses, the movement must be accompanied by a tax invoice and e-way bill, and GST must be discharged accordingly.Supplies made from such Haryana warehouses to customers within Haryana will be treated as intra-State supplies, attracting CGST and SGST of Haryana.
3. Treatment as Distinct Persons
As per Section 25(4) of the CGST Act, establishments in different States under the same PAN are treated as distinct persons. Therefore, movement of goods between Delhi and Haryana establishments constitutes a taxable supply, requiring invoicing and GST payment.
4. Determination of Place of Supply
The place of supply, governed by Section 10(1)(a) of the IGST Act, is determined based on where the movement of goods terminates for delivery.For goods dispatched from a Haryana warehouse to customers within Haryana, the supply is intra-State, attracting Haryana's CGST and SGST.
5. Applicability on Cold Storage Services
Cold storage services, being related to immovable property, are taxable in the location where the property is situated as per Section 12(3) of the IGST Act. Accordingly, CGST and SGST of Haryana will apply for such services if the cold storage is located there.
Compliance Implications for Businesses
This clarification significantly impacts importers, FMCG distributors, and e-commerce operators who use multi-state warehousing models. Businesses must ensure:
- Separate GST registration in each State where goods are stored and supplied.
- Proper documentation for all inter-state stock transfers.
- Compliance with return filing and record maintenance requirements under Section 35 and Rule 56 of the CGST Rules, 2017.
Failure to comply may lead to non-compliance penalties and disputes over the place of supply.
Conclusion
The CBIC's clarification provides much-needed legal certainty but also underscores the compliance burden for businesses operating across multiple States. By emphasizing that warehouses in other States constitute distinct places of business, the directive aims to ensure transparency and uniform tax administration under GST.
Official copy of the notification has been attached
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