05 October 2018
Dear Sir,. We are a Private ltd company (ABC Pvt. Ltd). We have two units in West Bengal. One unit manufactures cake and called HO other manufactures wrappers and cartoon boxes and called Branch . 90% wapper and cartoon boxes are captively consumed in cake unit (HO) and 10% is sold outside. We have taken two GSTN for both the Units separataly . Now the Issues are :- Electricity Bill for both the units come in the name of ABC Pvt.Ltd. and is paid by the Cake Unit(HO) wholly , Salary of Staffs working in the wrapper and cartoon box unit is also paid by the Cake Unit (HO). My question is that would cross charge arise in this case and Cake unit (HO) should issue Tax Invoice to the Wrapper and cartoon box Unit (Branch)? Note that appointment to staffs given by ABC Pvt. Ltd. and electricity is not taxable item. It is also to be noted that in this case no loss to government arises . If one will issue Tax Invoice Other Will utilize the ITC involved .
08 October 2018
Sir pls refer the section , notification or circular if any . Because a GST expert has advised us that one unit should issue tax invoice to other in this case .
CAclubindia
