Requirement of Registration - Out of State

[Rajendra Prasad]

ABC Limited (Located in Maharastra) purchases auto rickshaw from XYZ Limited (Haryana). XYZ Limited supplies entire auto in 3 parts namely Engine , Body , Tyres.

ABC Limited takes the delivery of the goods at Haryana State , sends them to their godown cum assembly unit at Haryana . After Assembly by the ABC Staff at Haryana , Auto will be sent to Maharastra.

Whether ABC Limited is required to take registration at Haryana State or not required.

ABC Limited do not wanted to take registration at Haryana. XYZ Supplies goods to ABC on bill to , ship to.

ABC sennds the completed auto from Haryana to MH on the basis of Delivery Challan.

Please clarify.

[Shilpi Jain]

The godown at Haryana is also a distinct establishment even though not registered, in terms of section 25(5). The assembly of the 3 parts would be in the nature of supply to ABC MH and thereby registration would be required in Haryana.

AI Summary

Distinct establishment under GST triggers registration where goods are assembled out of state before onward supply to buyer.
A buyer's godown used for receipt and assembly of parts is a distinct establishment under GST; assembly performed there by the buyer's staff constitutes an in state supply operation and therefore requires the buyer to obtain GST registration in that state, notwithstanding billing as "bill to, ship to" or movement under delivery challan.