ABC Ltd. Co. registered as Company having under the GST, its head office in Mumbai. It has also obtained registration for its branch situated in Jaipur, Rajasthan. ABC Ltd, had transferred 1000 units of finished goods fr
CS Professional · Advanced Tax Laws · PYQS · December 2021
ABC Ltd. Co. registered as Company having under the GST, its head office in Mumbai. It has also obtained registration for its branch situated in Jaipur, Rajasthan. ABC Ltd, had transferred 1000 units of finished goods from Mumbai to Jaipur branch without consideration, as stock transfer. You are required to state in the context of provision of GST whether such transaction qualifies as supply.
Answer & Explanation:
Yes, As per section 7(1)(c) read with Schedule 1 of Central Goods and Services Tax Act, 2017, when a person who has obtained or is required to obtain registration in a State or Union Territory in respect of an establishment in another State or Union Territory, then such establishments shall be treated as establishments of distinct persons. Transactions between different establishments with separate GST registration, of same legal entity (e.g. Stock transfers or Branch transfers) will qualify as 'supply' under GST. Accordingly, in view of section 7(1)(c) the stock transfer between Mumbai & Jaipur branch shall be treated as supply under GST.
Topics: GST
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