GST Registration for Marketplace Warehouse Stock

Do you need GST registration in every state where stock sits?

In most cases, yes. GST registration under the CGST Act is state-wise. When you store goods in a state, that location is normally treated as a place of business for your goods. Two situations follow:

• You are not registered in that state: you generally need a new registration there before stock is moved in.
• You are already registered in that state: you add the marketplace warehouse as an additional place of business on your existing registration.

Additional place of business only works within one state. It does not let you cover a warehouse in Karnataka using a Maharashtra registration.

This is a general explanation, not tax advice. Your actual position depends on the fulfilment model and the latest notifications, so confirm it with your tax adviser.

Why the rules point to state-wise registration

GST is a state-linked tax. Each registration (GSTIN) belongs to one state, and the same PAN can hold several GSTINs. Tax on a sale is decided by the place of supply, and stock-in-hand location decides which state a sale ships from.

Some points to keep in mind:

• Thresholds and exemptions for goods sellers have changed over time. Sellers supplying through e-commerce operators have had specific registration conditions. Check the latest CBIC notifications and the GST portal rather than relying on old blog posts.
• Marketplaces usually ask sellers to declare every warehouse that holds their stock. Your seller agreement and seller panel will show the process.
• Not all models are the same. If the marketplace buys your goods outright, stock may not be yours once it is in the warehouse. If it only stores and ships on your behalf, the stock stays yours and the state question applies to you.

What changes in invoicing and stock movement

When you send stock from your home-state registration to a warehouse in another state where you hold a separate GSTIN, GST generally treats this as a supply between distinct persons, even though it is the same legal entity. This usually means:

• You raise a tax invoice for the stock transfer, valued as per the valuation rules, and charge IGST at the rate for your product.
• You generate an e-way bill where applicable.
• The receiving GSTIN may claim input tax credit, subject to conditions.
• Customer sales fulfilled from that warehouse are invoiced under the warehouse-state GSTIN, with CGST plus SGST or IGST depending on the customer's state.

Find the correct GST rate through your HSN classification and the current rate notifications. Do not copy a rate from another seller.

How it affects settlements and TCS reconciliation

The marketplace reports tax collected at source (TCS) against the GSTIN it holds for you. If your sales ship from three states but your settlements are mapped to one GSTIN, your books and the GST portal will not agree.

Check these in your settlement reports:

• Which GSTIN each order or invoice was mapped to.
• Whether the state of dispatch in the report matches the warehouse that actually held stock.
• TCS and commission-linked GST lines, which you should compare to the TCS shown on the GST portal. The applicable TCS rate and rules come from the current notification, so confirm them with your adviser.

MarketplaceMetrics by Fundle reconciles marketplace sales with settlements for Indian brands and can help you see mismatches by order. Myntra Excel reports are reviewed today, and other marketplaces are in scope discussion.

Common mistakes sellers make

• Sending stock first, registering later. This creates invoicing gaps that are hard to fix.
• Not updating additional places of business when the marketplace moves your stock to a new warehouse in the same state.
• Ignoring auto-allocation. Some marketplaces spread stock across warehouses, so you may end up in states you never planned for.
• Wrong GSTIN on invoices after stock moves, which leads to TCS and ITC mismatches.
• Treating stock transfers as free movement without a tax invoice or e-way bill where required.

A practical checklist before you send stock

1. List every warehouse address where your stock is held, using your seller panel, inbound notices and the agreement.
2. Map each address to a state and compare with your existing GSTINs.
3. For missing states, discuss new registrations with your tax adviser before the next inbound shipment.
4. For states where you are registered, update the additional place of business on the GST portal.
5. Tell the marketplace which GSTIN to use for each warehouse.
6. Review a month of settlements and check that invoice GSTINs and TCS match your records.