STOCK TRANSFER UNDER GST

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

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
20 September 2026
Semi Qualified CA

Navin & Associates

Mumbai

CA Inter

View Details
Company
07 October 2026
Senior Account Manager

Amplio Invest

Mumbai

M.Com

View Details
Company
19 September 2026
Finance Manager

Mugdha Art Studio

Hyderabad

CA

View Details
Company
ARTICLESHIP 30 September 2026
CA Article Assistant

CA Suraj Garg & Associates

New Delhi

CA Final

View Details
Company
15 October 2026
Senior Accountant

Continental Belting Pvt Ltd

Mumbai

B.Com

View Details
Company
Featured 21 September 2026
Consultant - Reporting

Finrep Advisors LLP

Mumbai

CA

View Details
Company
ARTICLESHIP 28 September 2026
Junior Accountant

J S P M & Associates LLP

Pune

B.Com

View Details
Company
18 September 2026
Accounts & Finance Specialist

ULTRA CHEMICAL WORKS

Thane

CA Final

View Details