Billing Location and Warehouse Location

[Danish Azfar]

Hi Experts, 

If a company holds the GST registration in 2 states (Haryana and Tamil Nadu). Import the Goods in Haryana GST but put the goods in the Tamil Nadu Warehouse added in the GST. 

Upon selling the goods to their final customer in Chennai, can they issue the tax invoice from Haryana GST to Final Customer in Chennai while the shipment to final customer can be done from Chennai warehouse under Bill from and Ship From?

Please advise. 

[Rajan Kumar and associates]

First of all, how the Goods purchased by a person registered in Haryana, is stored in a place of another person registered in Tamilnadu. How the movement is actually happened?

[Ganeshan Kalyani]

Goods imported under Haryana GST will have documents in the name of Haryana. Also, import duty with IGST must have been paid under Haryana GST. In this case IGST would appear in Haryana GST which cannot be offset against TN GST payable.

[Sadanand Bulbule]

Alternatively, invoice must be raised from Tamil Nadu GSTIN, as goods are physically stored in there; Haryana GSTIN should first transfer stock  to Tamil Nadu GSTIN before final sale. The actual place of supply is the core issue.

[VENU K]

In my opinion, your Hariyana  and Tamilnadu registrations are “distinct persons” under GST. So imported goods should be transferred to Tamilnadu warehouse through an invoice by issuing IGST invoice. Further invoicing ought to be done by Tamilnadu registration . Moving goods from HR to TN is a taxable supply under Schedule I (even without consideration) and should be done via a tax invoice from HR GSTIN to TN GSTIN with IGST, with TN availing ITC. 

[Shilpi Jain]

How is TN warehouse added in Haryana GST registration..

I see some gap in facts

[Danish Azfar]

Dear Experts, 

Thanks a lot for your valuable feedback. 

@Shilpi Maam, 

TN has its GST and all the TN addresses added under it, as well as Haryana has its GST and all the Haryana addresses added under it. 

Thanks. 

AI Summary

Inter-state stock transfer requires IGST invoicing, and final sale invoicing should follow the location of physical supply.
Where two State GST registrations are distinct and goods imported under one registration are stored in another State, movement of goods from the importing registration to the storing registration is a taxable inter-State stock transfer requiring an invoice with IGST; the receiving registration may avail input tax credit, and final sale invoicing should be by the registration from which goods are dispatched, consistent with place of supply.