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Branch transfer under gst regime

venkat (Asst. Manager - Accounts) (29 Points)

06 March 2018

Please help regarding Branch Transfer as per GST Act.

This month we have send the materials to our branch in other state under Tax Invoice.

The above branch transfer have to show separately in GSTR 3B and whenever calculate the turnover the branch transfer have to consider or not.

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13 Replies

RAJA P M ("Do the Right Thing...!!!") (128111 Points)
Replied 06 March 2018

Yes... It's also consider as Sales...

1 Like

Dnyanesh Patade (Practice) (185 Points)
Replied 06 March 2018

Inter branch transfer will not form part of Aggregate Turnover.
However in monthly returns it will form part of sales..

1 Like

Miss Mansi Bhojani (Practicing Chartered Accountant) (1736 Points)
Replied 06 March 2018

Now GST is liable even in case of branch transfer and separate registration will be required for each branch if one wants to take ITC of transfered goods.

1 Like

venkat (Asst. Manager - Accounts) (29 Points)
Replied 06 March 2018

I agree with your statement.

As a Auditor point of view; Normally Auditor will arrive the Aggregate Turnover by adding the monthly sales transaction in monthly returns.

Is there any provision in monthly returns of GSTR 3B to separately discribe the Branch Transactions value.

Why because, Whenever the branch transactions also clubbed with Actual sales in monthly returns how will arrive the aggregate turnover without branch transactions value.

RAJA P M ("Do the Right Thing...!!!") (128111 Points)
Replied 06 March 2018

In GST aggregate T/O calculated as per PAN... Not an GSTIN...

If the transfer of Supplies in Intra State then GST not applicable and will be file all branch (Intra) transactions in One GSTIN.

If the Transfer of Supplies to Inter State and It will be treted as Sales and You will file separate GSTR in saeparate GSTIN...

2 Like

Gurwinder Singh (Sr. Accounts Officer) (471 Points)
Replied 06 July 2018

at what price we can transfer good to our branch

is there any rule

or we can transfer at any price

RAJA P M ("Do the Right Thing...!!!") (128111 Points)
Replied 06 July 2018

Your query is not cleared... You want intra state or inter state movement...? What you mean @ any price?

Gurwinder Singh (Sr. Accounts Officer) (471 Points)
Replied 06 July 2018

we want to transfer finished goods from punjab to delhi branch

while issuing tax invoice what should be the price of product.

my q. is there any rule in gst act regarding price of the product in case for one branch to another branch transfer

or we can transfer our product at any price from one branch to another branch.

RAJA P M ("Do the Right Thing...!!!") (128111 Points)
Replied 06 July 2018

No... Actual sale value will be chargeable is better

CA Shivam Arora (Chartered Accountant) (2414 Points)
Replied 06 July 2018

Originally posted by : venkat
	Please help regarding Branch Transfer as per GST Act. This month we have send the materials to our branch in other state under Tax Invoice. The above branch transfer have to show separately in GSTR 3B and whenever calculate the turnover the branch transfer have to consider or not.

1)In simple words transfer from 1 branch to another branch of different state is taxable. This branch transfer is to be shown in the same column as other taxable supplies.

2)Whenever you calculate the turnover, include the value of such branch tranfer.

RAJA P M ("Do the Right Thing...!!!") (128111 Points)
Replied 06 July 2018

No Dear Mr CA Shivam Arora., It's also treated as inter state supply and Show it in outward taxable supplies column.

CA Shivam Arora (Chartered Accountant) (2414 Points)
Replied 06 July 2018

Originally posted by : RAJA P M
	No Dear Mr CA Shivam Arora., It's also treated as inter state supply and Show it in outward taxable supplies column.

That's what I said ! I didn't mention the exact words like--Outward taxable supplies (other than zero rated, nil rated and exempted), rather I used the words other taxable supply only.

RAJA P M ("Do the Right Thing...!!!") (128111 Points)
Replied 06 July 2018

Originally posted by : CA Shivam Arora
	Originally posted by : RAJA P M No Dear Mr CA Shivam Arora., It's also treated as inter state supply and Show it in outward taxable supplies column. That's what I said ! I didn't mention the exact words like--Outward taxable supplies (other than zero rated, nil rated and exempted), rather I used the words other taxable supply only.