24 April 2019
Transfer of old machinery from one branch to another branch ( Interstate ) is not a supply , if it is not for furtherance of business .
Procedure for inter branch ( interstate ) transfer of machinery specified in Rule 138 of CGST Rules .
You may issue a delivery challan, serially numbered not exceeding sixteen characters, in lieu of invoice at the time of removal of machinery for transportation, containing the relevant details,
PROVISION FOR INTER BRANCH TRANSFER OF MACHINERY :- As per Schedule I – Branch Transfer even if without consideration to be treated as supply if Supply of goods or services between distinct persons or between distinct persons as specified in Section 25, when made in the course or FURTHERANCE OF BUSINESS .
Further , Circular No. 21/21/2017-GST
F. No. 354/320/2017 –TRU (Pt ) dt 22 Nov 2017 read with circular 1/1/2017-IGST dated 7.7.2017, was issued clarifying that such inter-state movement shall be treated “neither as a supply of goods nor supply of service” and therefore would not be leviable to IGST.
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