Input tax credit on stock transfer from factory to godown

This query is : Resolved

Kaustubh Ram Karandikar (Querist)
Follow

19 January 2019 XYZ having manufacturing unit at Gujarat and godown in Maharashtra. When the goods are stock transferred from Gujarat to Maharashtra, GST is paid on it being distinct person concept under GST provisions and Maharashtra is taking credit of the GST charged by Gujarat. However, since both are same entity, there is no payment made by Maharashtra to Gujarat. Can the GST authorities deny the credit to Maharashtra since one of the conditions is payment to be made to the supplier within 6 months?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

19 January 2019 Only GST payment has to be made for stock transfer.

RAJA P M

RAJA P M (Expert)
Follow

19 January 2019 Yes... I agreed to Mr CA R SEETHARAMAN Sir...

@ Mr Ram Karandikar.,

The said provision applicable only which is outstanding shown in the party ledger. But, The branch transactions will be close with journalise.

Message likes : 1 times

Vipin Gupta

Vipin Gupta (Expert)
Follow

20 January 2019 CA R Seetharaman sir which provision tell us that only GST payment has to be made. I am not able to get that point

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

21 January 2019 As stated by Mr Raja only journal entry to be passed for branch transfer no payment will be made that is the accounting practice.

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now