Rates
This query is : Resolved
VS Vedhagiri
(Querist)
06 June 2017
How the New GST rates are to be shared in the Invoice?
CA Rashmi Gandhi
(Expert)
06 June 2017
If a rate is 12% then 6% SGST & 6% CGST.
If goods are transferred to other state then whole 12% IGST will be charged
VS Vedhagiri
(Querist)
08 June 2017
Thanks for the reply. Please let me know how input of IGST can be setoff against CGST and SGST if I do not have output credit for IGST claim
CA Rashmi Gandhi
(Expert)
08 June 2017
Yes it can be set off from SGST & CGST.
VS Vedhagiri
(Querist)
15 June 2017
Thanks for the reply. Please advise me on the following issue:-
We have one registration under GST for our various branches in Chennai and also branches in Tamilnadu. We move goods from Chennai office to branches in Chennai and also to branches in Tamilnadu. What will be implication of CGT.
If we have to pay CGST and SGST on transfer of goods from our Chennai Office to branches in Chennai and also to branches in Tamilnadu, in my opinion sales and purchases will be inflated.
Please advise me the correct position
Thanks
We have one registration under GST for our various branches in Chennai and also branches in Tamilnadu. We move goods from Chennai office to branches in Chennai and also to branches in Tamilnadu. What will be implication of CGT.
If we have to pay CGST and SGST on transfer of goods from our Chennai Office to branches in Chennai and also to branches in Tamilnadu, in my opinion sales and purchases will be inflated.
Please advise me the correct position
Thanks
20 July 2025
Key points:
Single GST Registration: If your various branches in Chennai and across Tamil Nadu are under one single GST registration, then movement of goods between these branches is considered an internal transfer and not a supply.
No CGST/SGST on Internal Transfers: Since there is no "supply" involved (goods moving within the same GST registration), you do NOT have to pay CGST or SGST on transfers between branches.
No Sales/Purchases Recorded: As this is an internal movement, it should not be recorded as sales or purchases in your books. Just do an internal stock transfer entry.
What if branches have different GST registrations?
If branches have separate GST registrations (even within Tamil Nadu), then the transfer of goods between these branches will be treated as inter-state supply (if across states) or intra-state supply (if within the same state).
You would then need to charge CGST + SGST (if within same state) or IGST (if interstate), and file GST returns accordingly.
This would mean sales and purchases would be recorded between branches.
Your situation:
Since all branches are under one GST registration in Tamil Nadu, no GST is applicable on the transfer of goods between them.
This avoids inflation of sales and purchases figures.
Single GST Registration: If your various branches in Chennai and across Tamil Nadu are under one single GST registration, then movement of goods between these branches is considered an internal transfer and not a supply.
No CGST/SGST on Internal Transfers: Since there is no "supply" involved (goods moving within the same GST registration), you do NOT have to pay CGST or SGST on transfers between branches.
No Sales/Purchases Recorded: As this is an internal movement, it should not be recorded as sales or purchases in your books. Just do an internal stock transfer entry.
What if branches have different GST registrations?
If branches have separate GST registrations (even within Tamil Nadu), then the transfer of goods between these branches will be treated as inter-state supply (if across states) or intra-state supply (if within the same state).
You would then need to charge CGST + SGST (if within same state) or IGST (if interstate), and file GST returns accordingly.
This would mean sales and purchases would be recorded between branches.
Your situation:
Since all branches are under one GST registration in Tamil Nadu, no GST is applicable on the transfer of goods between them.
This avoids inflation of sales and purchases figures.
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