New
Published on:
February 23, 2023
By
Paramita

GST on Goods Transferred/Sold while Being Deposited in a Warehouse

Goods and Services Tax (GST) is a comprehensive tax levied on all goods and services in India. As per GST law, tax is levied on the supply of goods and services, which includes inter-state and intra-state transactions, import and export of goods and services, goods and services sold in a warehouse, and more. In this article, we will focus on GST on goods transferred/sold while being deposited in a warehouse.

What is GST on goods transferred/sold while being deposited in a warehouse?

A warehouse is a place where goods are stored for a certain period before being sold. Under GST, the transfer of goods from one place to another is considered a supply, and hence, GST is applicable. The GST law requires the payment of GST on goods transferred/sold while being deposited in a warehouse. The GST on such transactions is known as the ‘warehousing provision’.

How is GST on goods transferred/sold while being deposited in a warehouse calculated?

The GST on goods transferred/sold while being deposited in a warehouse is calculated based on the transaction value of the goods. The transaction value is the price actually paid or payable for the goods. The GST rate applicable on such transactions is the same as that applicable on the supply of goods.

Who is liable to pay GST on goods transferred/sold while being deposited in a warehouse?

As per the GST law, the person who deposits the goods in a warehouse is liable to pay GST on goods transferred/sold while being deposited in a warehouse. The person who deposits the goods in a warehouse could be the owner of the goods or any other person authorized by the owner.

What is the due date for payment of GST on goods transferred/sold while being deposited in a warehouse?

The due date for payment of GST on goods transferred/sold while being deposited in a warehouse is the date of removal of goods from the warehouse. If the goods are removed from the warehouse on different dates, the due date for payment of GST will be the date of removal of goods from the warehouse.

What are the compliance requirements for GST on goods transferred/sold while being deposited in a warehouse?

The compliance requirements for GST on goods transferred/sold while being deposited in a warehouse are the same as that for any other supply of goods. The person who deposits the goods in a warehouse is required to file GST returns and maintain proper books of accounts. The person is also required to issue a tax invoice for the supply of goods.

Conclusion

The GST on goods transferred/sold while being deposited in a warehouse is an important provision under the GST law. It ensures that GST is paid on all supplies, including those made in a warehouse. As a small and medium business owner or a startup founder, it is essential to understand the provisions of GST and comply with the same to avoid any penalties or legal issues.

Suggestions



GST on Pre-Packaged Food Items – What happens when they are Exported?
KNIVES CUTTING BLADES - GST RATES & HSN CODE 8211
GST Rates and HSN Code for Typewriter: Understanding the Basics

Updated on:
March 16, 2024