Capital goods Cross charges

This query is : Resolved

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This discussion clarifies the process of cross-charging capital goods to branches in India. While a GST invoice is raised for the service of usage or benefit provided to branches, the capital asset's value should not be nullified in the head office books. The cross-charging should cease once the asset's value becomes zero in the head office's accounts, based on its life and usage.

Rajkumar Gutti

Rajkumar Gutti (Querist)
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19 December 2025 We have multiple branches in all over India.
Head office is in Maharashtra.
We purchased comuter, and executive chairs at head office.
Now we want to raise invoice to all over branches via cross charges method.
Question- whether capital goods as well as input transferred to branches raising tax invoice.
Means capital goods value nullify in Head office books.

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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22 December 2025 NO, capital goods value should NOT be nullified in Head Office (HO) books if you are following the cross-charge method.
YES, GST invoice is raised to branches — but only for service (usage/benefit), not for transfer of capital goods.

Rajkumar Gutti

Rajkumar Gutti (Querist)
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22 December 2025 How we consider valuation, means as per life of asset & usage. In short when asset become zero value in H. O. Books, then stoping cross charges. Is it right.

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