STOCK TRANSFER UNDER GST

420 views 4 replies

Manufacturing plant send material to depot against stock transfer. Can depot increase the prices of material and bill to customer. Is it possible.
In excise time, Manufacturing plant issue supplementary invoice to depot after that depot can increase the prices...

Replies (4)
Dear Manoj
Condition: 1
if the Manufacturing plant & the Depot are in same state , you can transfer goods from Manufacturing plant to Depot on Delivery Challan . (Ian assuming the GSTN of both are same )
Hence in this condition the price of material sold by depot to customer hardly matters , ( both unit is treated as same. ) so can supply on increased price .

Condition : 2
when the Plant & Depot are in two different state, now you can supply material to Depot on Delivery challan , As per schedule 1 it's supply to distinct person hence Tax Invoice need to be raise as prescribed in section 31 of CGST Act .
In terms of 2nd proviso to Rule 28 , where the Recepient (depot) is eligible for full ITC , then value declare in invoice deemed open market value . Hence in this case also the depot can supply the material greater price then he Reced. from Manufacturing Plant .

So in any case the depot can Supply material greater then the price he Reced.
** in 2 nd condition cannot supply on Delivery challan
Is there any provision that we cannot stock transfer more than 10% of value of goods. If we do stock transfer one depot to another depot.
No ...... there. is no such provision in law


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register