Rate of GST On Stock Transfer
This query is : Resolved
Tarique Rizvi
(Querist)
06 May 2025
With kindest regards I approach with the below given query :
Eligibility Criteria for Concessional GST Rate on Merchant Exports. The government has introduced a concessional GST rate of 0.1% for purchases of goods from domestic suppliers, a measure aimed at promoting merchant exports.
We have to transfer stock from our Andhra GST Number to Our Bombay GST Number.
What will be the rate of GST on such a transfer of stock.
YOURS TRULY
TARIQUE RIZVI
982 1630 130
With kindest regards I approach with the below given query :
Eligibility Criteria for Concessional GST Rate on Merchant Exports. The government has introduced a concessional GST rate of 0.1% for purchases of goods from domestic suppliers, a measure aimed at promoting merchant exports.
We have to transfer stock from our Andhra GST Number to Our Bombay GST Number.
What will be the rate of GST on such a transfer of stock.
YOURS TRULY
TARIQUE RIZVI
982 1630 130
12 August 2025
Hello Tarique,
Regarding GST on stock transfer between your own GST registrations (Andhra GSTIN to Mumbai GSTIN), here’s the clarification:
1. Is it a supply?
Under GST law, transfer of stock between two different GST registrations of the same entity is treated as a supply.
Even though it is an internal transfer, it attracts GST.
2. Type of supply
It is an inter-state supply if the locations are in different states (Andhra Pradesh to Maharashtra).
This means IGST will be applicable.
3. Rate of GST
The applicable GST rate will be the same as the rate applicable on sale of those goods.
So, if your goods attract 18% GST normally, the stock transfer will also attract IGST @18%.
There is no concessional GST rate (like 0.1%) on stock transfers. The concessional rate applies only to merchant exporters for procurement from domestic suppliers, not on internal stock transfers.
4. What about merchant exporters?
The 0.1% concessional GST rate applies only to merchant exporters purchasing goods domestically for export.
This concessional rate is not applicable to stock transfers between GSTINs.
You must issue an invoice for the stock transfer with IGST charged.
The Mumbai GST registration can claim Input Tax Credit (ITC) on the IGST paid.
Proper accounting and documentation are essential to avoid tax issues.
Regarding GST on stock transfer between your own GST registrations (Andhra GSTIN to Mumbai GSTIN), here’s the clarification:
1. Is it a supply?
Under GST law, transfer of stock between two different GST registrations of the same entity is treated as a supply.
Even though it is an internal transfer, it attracts GST.
2. Type of supply
It is an inter-state supply if the locations are in different states (Andhra Pradesh to Maharashtra).
This means IGST will be applicable.
3. Rate of GST
The applicable GST rate will be the same as the rate applicable on sale of those goods.
So, if your goods attract 18% GST normally, the stock transfer will also attract IGST @18%.
There is no concessional GST rate (like 0.1%) on stock transfers. The concessional rate applies only to merchant exporters for procurement from domestic suppliers, not on internal stock transfers.
4. What about merchant exporters?
The 0.1% concessional GST rate applies only to merchant exporters purchasing goods domestically for export.
This concessional rate is not applicable to stock transfers between GSTINs.
You must issue an invoice for the stock transfer with IGST charged.
The Mumbai GST registration can claim Input Tax Credit (ITC) on the IGST paid.
Proper accounting and documentation are essential to avoid tax issues.
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