Stock transfer between two composition suppliers

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Transferring stock between two composition suppliers under different GSTINs is generally not permitted outside of a sale. If the intention is to change ownership, such as transferring to a father, this is treated as a change in ownership rather than a supply, and no GST is payable. The new owner would then operate under a new GSTIN, and subsequent transfers can occur within the same state.

Muhammed Shuhaib K

Muhammed Shuhaib K (Querist)

07 January 2024 Can you please suggest which GSTR form allows us to transfer stock from one GSTIN to another. Both parties are composition dealers

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

07 January 2024 Stock transfer not allowed. Treat it as sale issue composition sale bill.

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Muhammed Shuhaib K

Muhammed Shuhaib K (Querist)

07 January 2024 Here taxpayer wants to change the ownership to his father. So there is no supply of goods taken place. Still the taxpayer liable to pay tax on it

RAJA P M

RAJA P M (Expert)

08 January 2024 Yes I agreed with Mr CA R Seetharaman Sir. It's not possible to transfer goods from one GSTIN to another GSTIN except sale procedure.

RAJA P M

RAJA P M (Expert)

08 January 2024 In case the ownership changed or Take over then GSTIN will change as per new owner (father). after that they make transfer like same GSTIN. (Note : The transfer can be made only intra state not for Inter state).

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

08 January 2024 No GST payable in case of ownership change.

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