Capital goods Cross charges

This query is : Resolved 

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.

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.

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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