Intra-state branch trf

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 December 2018 Dear Members.
In gst regime I'm confused about branch trf both inter and intra, I have studied here that No GST shall be levied on intra-state branch trf. Pls let me know the relevant section, rules, wherein it is stated that No GST is chargeable on intra-state branch trf.

Thanks
Rohit Jain

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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17 December 2018 As per Paragraph 2 of Schedule I, supply of goods or services or both between distinct person is to be treated as supply even if made without consideration.

Crux: This if a person supplies goods or services from one his establishment to other having different GST No. , then it will be treated as supply even if made without consideration. So transfer will also be treated as supply and GST will have to be paid when goods are transferred from one establishment to other.

Considering you are doing stock transfer intra state(within the state), assuming you have same GST No for both the branches, no GST will be involved on such stock transfer. Whereas if you have taken multiple registration within the same state and both of the branches are in diiferent GST No then you will have to pay GST on stock transfer. It will be treated as sale from one branch to other.

If you are doing stock transfer from inter state then always GST will be applicable as per sec 25(5), as it will be treated as distinct person.

Querist : Anonymous

Querist : Anonymous (Querist)

17 December 2018 Sir we are registered in Noida whereas branch is located in Lucknow with same GSTIN. Hence No GST shall be paid on intra-state branch trf with same GSTIN. But question arise by which document stock shall be trf from Noida to Lucknow. If we use delivery challan then rule 55(1) state that tax even will be charged in delivery challan. Also without tax how the eway bill is to be generate.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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17 December 2018 No tax will be charged in delivery challan, tax will be indicated. Generate E way bill for the challan.

Querist : Anonymous

Querist : Anonymous (Querist)

17 December 2018 1) sir what do you mean by tax will be indicated,
2) whether eway bill can be generate without tax

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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17 December 2018 1 Applicable GST will be filled not to be paid.
2 yes fill GST amount but not payable.

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