Sale in transit

This query is : Resolved

K. Shukla (Querist)
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29 November 2018 A prop. of firm and a regd. dealer under the GST in Delhi, has purchased the goods lying at Chennai from a party of Maharashtra on as is where is basis for Rs.200 lac. The sale agreement has drafted and a consolidate bill Rs.200.00 lac has issued by seller and IGST charged. Now I am dismantling the unit in chennai later on to sale the dismantled goods.

Should the prop/firm take another GST no. in Tamilnadu or can sale the goods on existing GST number of Delhi?

Saket Agarwal

Saket Agarwal (Expert)
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30 November 2018 Hi. When the Delhi party became the owner of the goods lying in Chennai, were the goods kept at a place which was owned/rented by the Delhi party? If yes, then Delhi party has a place of business in Chennai. If later the sale of goods is being made from Chennai, then it would become a supply from Chennai. Registration in Chennai would become compulsory.

If the Delhi party was keeping the goods at a location owned/rented by the Mumbai party, even then the situation won't change. Registration will be required. However, in this case the registration has to be of a Casual Taxable Person as the Delhi party does not have a fixed place of business in Chennai.

If the Delhi party is not going to do supplies from his place of business in Chennai, then he can de-register in situation 1 above.