08 Oct 2017Posted By: Arvind


Supply of Goods in Trade Exhibition in another state

Supply of Goods in Trade Exhibition in another state

Every business in India engaged in the taxable supply of goods or services whose gross turnover exceeds the prescribed limit (threshold limit) of Rs. 20/10 Lakhs (as the case may be) will be required to get register under Goods and Service Tax (GST) as a normal taxable person.

GST registration is very crucial because it will allow the supplier of goods and services to avail various tax benefits available under the new GST regime. One of the most important benefits is to avail seamless credit of tax paid on inputs. Most of the indirect taxes are being subsumed under GST and thus the cascading of certain indirect taxes will no longer be the case.

Multiple Registrations under GST

A person engaged in multiple business verticals within a state might be requiring a separate GST registration for each business vertical.

India is a sovereign country with ample of powers to every state. Different from other nationals, the new tax regime GST implemented as dual tax system. This simply means, two different types of GSTs are implemented in India. So, on the account of Taxpayers is to be accounted separately. Currently, the government insists separate registration under GST for each state. For an instance, if ABC has a business transaction of goods or services or both in Tamil Nadu, Gujarat, Maharashtra, and Rajasthan, then he has to take separate GST registration in all the four states. It simply means, a separate GST registration must be obtained in each state, though the PAN Card number is same.

As per section 19(1) of the GST Law, every person who is required to take a Registration under GST regime will have to obtain a separate registration for each of the States where he is operating his business and is liable to pay GST.

In the case of supply of Goods (Selling of Goods) in trade exhibition in different states

Where the goods are supplied to a trade exhibition in an another State where the supplier of the goods does not hold any office premises, he would be required to obtain a separate GST registration as a casual taxable person and would also require making an advance deposit of the expected GST which would be payable. However, in the case where the supplier simply transported the goods for exhibition purposes only, and not for the purpose of supply, the said goods may be taken to the trade exhibition under a delivery challan. At present, no documents under GST law have been prescribed.  Therefore, the Supplier of the Goods will not be required to obtain a separate registration as a casual taxable person under GST law if no supply of the goods is made in that state.

In other words, where a person (who is already registered under his state GST) participating in a trade exhibition in some another state only for one event need not apply for GST registration separately. Though, he has to take the GST registration in another state (in the state where the exhibition is being held) if he supplies goods from that state.  

For an example, If a company in Rajasthan participate in a trade exhibition event in Chennai, will be required to obtain separate registration in Chennai only if the company provides any supply from Chennai.

Issues for the Supplier of Goods

This provision in GST law considerably harsh to the suppliers: as they have to apply for separate registration supplying goods in any trade/business exhibition in another state. This will increase the initial cost as well as the procedural compliance.

 

Comments







Posted By Hitesh
Posted Date 2018-01-22 15:18:40

what will be GST impact on supply of goods in trade exhibition in foreign countries as materials will be used for samples & gifts to foreigners


Posted By Sruthi Nagula
Posted Date 2018-02-24 10:58:04

Sir, I have gst number of maharashtra but I want to participant in exhibition in other state and is it compulsory to take gst number of exhibition state, if yes how to get


Posted By Pulkit Gupta
Posted Date 2018-03-04 11:59:48

Hi Nagula You need to take apply for casual GST registration if you are conducting exhibition outside the state on which you have normal gst registration. click here to know more about gst registration https://www.youtube.com/watch?v=V8m40Dw4A5o&t=


Posted By Raghavendra
Posted Date 2018-03-24 18:05:45

Sir, I have GST registration in Karnataka but I want to participant in exhibition in same state and is it compulsory to take GST number of exhibition sale separately ? if yes how to proceed ?


Posted By Mudit Handa
Posted Date 2018-03-26 14:46:28

Hi Raghavendra! You can participate in the trade exhibition with your current GSTIN. You need not get separate GSTN as your purpose is merely trade-promotion. However, if you want to trade in some other state, you need to get the GST number of that state.


Posted By P.J.Mathukutty
Posted Date 2018-05-04 18:20:52

our import goods received at Chennai for exhibition after exhibition we have to bring the goods to our factory at Lucknow what documents are required for the same


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