A company has a manufacturing unit in the state of West Bengal. The company is registered in the state of West Bengal.
The raw material are agricaltural produce, ie. maize, which is an exempted goods. The company has taken a godwn on rent in the state of Bihar.The Godown is used for storage of maize procured locally and transferred to the manufacturing unit in the state of West Bengal. There are no other receipt / supply of taxable goods and / or services from the state of Bihar.
Query -
Whether the company is required to obtain registration in Bihar.
Your valuable view please.
Company storing exempt maize in Bihar godown faces conflicting GST registration requirements for interstate transfers A company with a manufacturing unit in West Bengal rented a godown in Bihar for storing maize, an exempted agricultural product procured locally. The stored maize is transferred to the West Bengal manufacturing unit. No other taxable goods or services are supplied from Bihar. The query concerns whether GST registration is required in Bihar. One expert argued that registration is not required since the company only stores exempt goods without making taxable supplies from Bihar. Mere storage of exempt goods without commercial activity does not trigger registration requirements, and no registration is needed for persons engaged only in exempt goods supply. Another expert contended that transferring goods from Bihar to West Bengal constitutes a supply triggering registration requirements. However, if storage charges are paid to another person for storing goods rather than operating a rented godown, registration would not be required. The discussion presents conflicting interpretations regarding interstate transfer of exempt goods and storage arrangements under GST registration requirements. (AI Summary)
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