Godown transfer

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This discussion clarifies the GST treatment for manufacturers transferring finished goods to their godowns. It confirms that such transfers are generally not considered a supply if the factory and godown share the same GSTIN. Goods can be moved using a delivery challan and e-way bill without GST. Details of delivery challans need to be reported in GSTR-1 under specific document categories, and GST on freight to the godown is typically not applicable unless separate GSTINs are involved.

sankar ponnan

sankar ponnan (Querist)
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12 April 2021 Sir / Mam
Manufacturer transfers the finished goods to his godown.
He sells the goods from the factory place and also from the place of godown by issuing different serial numbers.
My doubts are,
- Can he treat the goods transferred to godown as supply?
If not,
- Can he transfer the goods to godown by delivery challan with e-way
bill with out GST?
- Delivery challan details need to be shown in GSTR-1 ?
- GST on Freight to godown is applicable when there is no supply ?

Plz guide me
thanks in adv

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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12 April 2021 1 Goods transferred to godown is not supply.
2 Transfer it through delivery challan and E way bill without GST.
3 As per the Final Returns, in GSTR – 1, table 13 we have to show the number of documents issued for the tax period i.e beginning of the serial number and end of the serial number and then the difference between the two will give the number of document issued for tax invoice, receipt voucher, refund voucher, delivery challan issue for job work etc
4 GST on freight to godown not applicable.

CA Altamush Zafar

CA Altamush Zafar (Expert)
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13 April 2021 If godown and factory have separate gstin then it will be treated as supply otherwise it is not supply and transportation can be done through delivery challan. Such delivery challan can be shown in document issued column under appropriate head. Freight charged by GTA will be subject to RCM. For further query you can mail me