Taxes on shg products sale

We need your assistance on the following matter : one of my friend runs a self help group (shg) in a village at Madhya pradesh. They manufacture Papad, pickles, spices, sanitary pads and some other items. They have got some orders from other shg from Uttar Pradesh & Rajasthan. Now they want to supply their products to these shg . But they don't have their vat/ cst registration. Also the receiving state's shg doesn't have the vat/ cst registration. They only have the bank account. How they can do the transaction. What about the taxation.billing procedure. Please guide me.