Goods and Services Tax (GST) will unify India into one of the largest market for goods and services across the world. Under GST, the requirement for compliance from businesses would be extensive to reduce revenue leakage for the Government, while also attempting to improve ease of doing business in India by digitising the administration of GST through the GSTN Network. Transportation, godown and warehouses are key logistical infrastructures for any country and a basic requirement for doing business. Hence, to account for all transport or transfer of goods within India, a special mechanism has been introduced for registration of Godown, Warehouse and Transporters not registered under GST.
When GST Registration is Required?
Most businesses operating in India would be required to obtain GST registration on account of the aggregate turnover criteria or due to inter-state supply of goods or because the business becomes liable to pay tax under GST reverse charge mechanism.
In terms of the aggregate turnover criteria, expect for States designated as special category states, any person doing more than Rs.20 lakhs of aggregate turnover in a financial year is required to obtain GST registration. In special category states, the GST aggregate turnover criteria has been fixed at Rs.10 lakhs.
Irrespective of the aggregate turnover of a business, any business involved in inter-state supply of goods/services would be required to obtain GST registration. Further, any business that becomes liable to pay GST on account of reverse charge mechanism would also have to obtain GST registration, irrespective of turnover.
Read the full criteria list for obtaining GST registration.
Godown, Warehouse and Transporter GST Registration
According to the GST Act, all owner or operator of warehouse or godown or any other place used for storage of goods and every transporter, irrespective of whether they have GST registration are required to maintain records of the consigner, consignee and other relevant details of the goods stored or transported.
Thus, if any godown, warehouse or transport do fall under the criteria for obtaining GST registration, they are still required to register themselves under GST by filing Form GST ENR-01. On filing and verification of the GST registration application form for unregistered godown, warehouse or transporter, a unique enrollment number would be provided to the godown or warehouse or transporter.
Records to be Maintained by Godown, Warehouse and Transporters
Any person engaged in the business of transporting goods in India is required to maintain records of goods transported, delivered and goods stored in transit by him along with GSTIN of the registered consignor and consignee for each of his branches.
All owners and/or operators of a warehouse or godown are required to maintain books of accounts with respect to the period for which particular goods remain in the warehouse, including the particulars relating to dispatch, movement, receipt, and disposal of such goods. Further, a owner or operator of godown is required to store the goods in a manner that they can be identified item wise and owner wise and is required to facilitate any physical verification or inspection by the proper officer on demand.