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Stock Transfer Intra State and Inter State in GST Scenario

Stock Transfer Intra State and Inter State in GST Scenario

          

          Pre GST every companies make stock transfer in inter state and intra state through Form F and so there is no tax liability.

 

But under GST Regime.

Section-10 of Model GST law ensures that one company having establishments in different states are separate persons.Further section 3 of Model GST Law read in conjunction with schedule 1 outlines that supply of goods or services between distinct persons as specified in section-10,when made in the course or furtherance of business without consideration will be treated as supply.

 

Stock Tansfer (Interstate Supply)

Illustration :

 TVS Tyres are transferring their stock from Madhurai (Tamil Nadu) to Kochi (Kerala) to their Godown they need to raise TAX Invoice with IGST Tax.TVS Tyres need to maintain separate registration in both the states.

 

Stock Transfer (Intra State Supply)

Illustration :

 If TVS Tyres are transferring their stock from Madhurai (Tamil Nadu) to Coimbatore (Tamil Nadu) and they no need to raise the Tax invoice as the same entity as treated in single registration.

 


Stock Transfer (Intra State Supply) to Different Business Vertical.

 

Illustration.

If TVS Tyres are transferring goods to TVS Automobiles in Tamil Nadu itself and they need to raise Tax Invoice as the business vertical are different and their registration also will be different and it should be charge invoice on SGST and CGST tax.

 


It is so because Section-10 also provides that a person who has obtained more than one registration in a state ,shall in respect of each such registration be treated as distinct persons .This would be classic cases where an entity is having separate business vertical wise registrations.

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