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machinery / excavators shifting between two states having separate GST registraion

Ratnakar Reddy (Finance Director) (36 Points)

18 November 2018

any clarification or notification for transfer / shifting of machinery / excavators between two branches at various states having separate registration numbers. for this movement any IGST liability under distinct person

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Pankaj Rawat (GST Practitioner) (55037 Points)
Replied 18 November 2018

As per Section 25 (4)CGST Act : person who has obtained or is required to obtain more than one registration, whether in one State or Union territory or more than one State or Union territory shall, in respect of each such registration, be treated as distinct persons for the purposes of this Act.

Hence if any capital goods being transfer to its Branch (other state) & going to install therein will treated as supply (as distinct person)

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Ratnakar Reddy (Finance Director) (36 Points)
Replied 18 November 2018

under works contracts the machinery or vehicles moves frequently between states whether these movements also covered to raise IGST

Pankaj Rawat (GST Practitioner) (55037 Points)
Replied 18 November 2018

dear ratnakar
Section 22 Of The ACT Reads As 'Every Supplier Shall Be Liable To Be Registered Under This Act In The State Or Pinion Territory, Other Than Special Category iStates, From "Where He Makes A Taxable Supply Of Goods Or Services" Or Both

"PLEASE NOTE FROM WHERE....MEANS WHERE HE IS REGISTERED"

In case if suppose work contractor registered in "A" and wants to transfer his capital goods to "B" state to his site where he is not registered,then can be transfer on Delivery Challan ,

So in this case if he work contractor has branch office if he tranfer his capital goods branch office its treated as supply.

GST Is Applicable In The Case Of Stock Transfer Because It Happens To A Related Party And As Per Schedule I, Any Supply Between Related Party Shall Be Considered As Supply With Or Without Consideration.

In The Light Of All The Analysis Done Above, We Can Conclude GST Shall Be Mandatory If You Open A Branch Outside The State

Dear
so its a simple funda in GST ,if you are transferring to your branch then its taxable , else not (in case of work contract)

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