Registration Requirement unde GST

[Shyam Naik]

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.

[YAGAY andSUN]

A person is required to obtain registration in a state from where taxable supply of goods or services is made. In your case, the company is only storing exempted agricultural produce (maize) in Bihar, and no taxable supply is made from Bihar. Mere storage of exempt goods without any outward taxable supply or commercial activity from the godown does not trigger registration requirement. Further, no registration is required where the person is only engaged in supply of exempt goods. Hence, under settled legal position and practical interpretation, the company is not required to obtain GST registration in Bihar merely for storing maize.

[Shilpi Jain]

Transfer of goods from Bihar to WB would be a supply of goods triggering registration requirement. If its not godown on rent but storage charges paid to a person storing your goods, registration not required.

AI Summary

GST registration requirement: mere storage of exempt agricultural goods in another state does not compel registration. GST registration is required where taxable supplies are made from a state; mere storage of exempt agricultural produce in another state without any taxable receipts or supplies does not trigger a registration obligation. However, transfers that constitute taxable supplies or different commercial arrangements with third-party warehousing can change the analysis and may give rise to registration requirements.