Sta price and ditributor price

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 August 2018 We have business operations in other states all over india. For this we will send our goods to other states with payment of IGST on Factory Cost price.

We have number of distributors/Customers in Andhra Pradesh and Telangana for selling our products in this States. We are selling our products to Customers and Distributors in different rates of price including with our margins. This Price will not match to our Stock Transfer Price where we are sending goods to our other states depots.

So I request you please advice the above procedure is correct under GST law or not ?

If not Is there any specific rule that we must sell only one price both Stock Transfers to other states as well as Distributors/Customers ?

Rajesh Kumar

Rajesh Kumar (Expert)
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21 August 2018 No, there is no such law. The price can differ for different customers. The basis of valuation under GST law is transaction value. In case of Central Excise, where the valuation was based on Transaction value, the Supreme Court held [Eicher Tractor v. CC, 122 ELT 321] that every removal is a different transaction and value of for each transaction can be different. Thus it is not necessary to have a same price for stock transfer and sale... in fact various sales can be of different price.