Place of supply in case of warehousing

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 February 2018 Dear Sir/ madam,

What is the Place of supply in case of cold storage (warehousing) of goods in the following situation?
Warehouse- Karnataka
Customer- Maharashtra
Goods- Karnataka

Please clarify me, its urgent
Thank you.

Arpit

Arpit (Expert)
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15 February 2018 place of supply in your case shall be the location where movement of goods terminates for delivery to the recipient.

So if you are delivering the goods to the customer in Maharashtra then it will be Maharashtra. If customer is taking the delivery from your warehouse, then it shall be Karnataka

Querist : Anonymous

Querist : Anonymous (Querist)

15 February 2018 Dear sir,

the above issue is not like as logistics, they want to charge GST for freezing (Warehousing) of gods for 1 month to Maharashtra party. delivery and all will take care by the recipient him self.

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Arpit

Arpit (Expert)
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15 February 2018 in that case place of supply shall be karnataka

Querist : Anonymous

Querist : Anonymous (Querist)

16 February 2018 Dear Sir,

May i know how the POS is Karnataka? because the service receipient is in Maharastra right?

Thank you..

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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10 August 2024 In the context of warehousing and cold storage services under GST, the place of supply is determined by the nature of the service and the location where it is provided. Here’s how it works for the given scenario:

### **Scenario Details**
- **Warehouse Location:** Karnataka
- **Customer Location:** Maharashtra
- **Goods Location:** Karnataka (same as the warehouse)

### **Place of Supply for Warehousing (Cold Storage) Services**

**Applicable GST Rules:**

1. **Place of Supply for Services Related to Goods:**
- **Rule 4 of the Place of Supply Rules:** For warehousing services, the place of supply is where the service is actually performed. This is because the service is related to the storage and handling of goods.

2. **Application in Your Case:**
- **Service Provided:** Cold storage (warehousing) of goods.
- **Location of Service (Warehousing):** Karnataka.
- **Place of Supply:** The place of supply for warehousing services is the location of the warehouse where the service is provided, i.e., Karnataka.

**Tax Implication:**
- Since the place of supply is Karnataka (where the warehousing service is performed), the transaction is considered an intra-state supply of services.
- **GST to be Charged:** You should charge **CGST + SGST** because the place of supply and the location where the service is performed are in the same state (Karnataka).

### **Summary**
For warehousing services such as cold storage, the place of supply is where the warehousing is performed. In this case, since the warehousing is done in Karnataka, you should charge **CGST + SGST** on the service provided to the customer in Maharashtra.