STOCK TRANSFER FROM ONE STATE TO OTHER STATE

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This query is : Resolved

Quick Summary

Transferring stock between different states for the same company, even with separate GST registrations (e.g., Maharashtra and Andhra Pradesh), is considered a supply and attracts GST liability. The receiving branch can claim the Input Tax Credit (ITC) for this inter-state transfer, which is treated similarly to a sale for tax purposes.

TARIQUE RIZVI

TARIQUE RIZVI (Querist)

20 January 2024 We are holding two GST Registration Number the one for Maharashtra and the other for Andhra Pradesh for the same company. My query is that once stock is transferred to from Andhra Pradesh to Maharashtra State, whether it will attract GST Liability on such a stock transfer. Please guide me and oblige.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

21 January 2024 Yes GST applicable on such transfer and ITC can be claimed on it.

RAJA P M

RAJA P M (Expert)

21 January 2024 Yes I agreed with Mr CA R Seetharaman Sir... Such Transfer (interstate) treat as Sales. Tax portion claim as ITC (in receiving branch).

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)

24 January 2024 Both of these establishments under the same PAN will be treated as distinct persons under section 25(4) and therefore para 2 Schedule I will apply and accordingly it will be supply liable to GST. valution of this supply shall be as per the valuation rules.

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