Gst on transfer from factory to outlet
This query is : Resolved
02 August 2017
I need ur opinion and suggestion in this regard: The assessee manufactures taxable product under GST, has 5 branches within the same state. ( all factory and branches in the same state) In this regard, I would like to know, whether the factory is liable to pay GST on goods cleared to branches.? Incase if factory is to pay gst on supply to branches, it will be like the same person paying and claiming ITC on the same. This amounts to liquid cash being freezed on stock in hand( gst) The business being very small in size, what is the most effective system to follow? Kindly advice
02 August 2017
Don't worry....
Intra state branch supplies not taxed....
02 August 2017
but this from a Factory to a branch
02 August 2017
All places of business within the same GSTIN No. are one registered assesse. Supplies within such places of business be it factory or branch is not a supply liable to GST as per SEction 7 of the CGST Act.
02 August 2017
Intra/Same State branch Transfer can't taxable. It's move just transfer in anywhere in the state.
After E-way bill implement You can move it E-way bill via.,
After E-way bill implement You can move it E-way bill via.,
09 August 2017
7. (1) For the purposes of this Act, the expression “supply” includes––
(a) all forms of supply of goods or services or both such as sale, transfer, barter,
exchange, licence, rental, lease or disposal made or agreed to be made for a consideration
by a person in the course or furtherance of business;
(b) import of services for a consideration whether or not in the course or
furtherance of business;
(c) the activities specified in Schedule I, made or agreed to be made without a
consideration; and
(d) the activities to be treated as supply of goods or supply of services as
referred to in Schedule II.
(2) Notwithstanding anything contained in sub-section (1),––
(a) activities or transactions specified in Schedule III; or
(b) such activities or transactions undertaken by the Central Government, a
State Government or any local authority in which they are engaged as public
authorities, as may be notified by the Government on the recommendations of the
Council,
shall be treated neither as a supply of goods nor a supply of services.
(3) Subject to the provisions of sub-sections (1) and (2), the Government may, on the
recommendations of the Council, specify, by notification, the transactions that are to be
treated as—
(a) a supply of goods and not as a supply of services; or
(b) a supply of services and not as a supply of goods.
Section 7 is as above, can anyone justify where it says that the transfer from Factory to branch taxability?
(a) all forms of supply of goods or services or both such as sale, transfer, barter,
exchange, licence, rental, lease or disposal made or agreed to be made for a consideration
by a person in the course or furtherance of business;
(b) import of services for a consideration whether or not in the course or
furtherance of business;
(c) the activities specified in Schedule I, made or agreed to be made without a
consideration; and
(d) the activities to be treated as supply of goods or supply of services as
referred to in Schedule II.
(2) Notwithstanding anything contained in sub-section (1),––
(a) activities or transactions specified in Schedule III; or
(b) such activities or transactions undertaken by the Central Government, a
State Government or any local authority in which they are engaged as public
authorities, as may be notified by the Government on the recommendations of the
Council,
shall be treated neither as a supply of goods nor a supply of services.
(3) Subject to the provisions of sub-sections (1) and (2), the Government may, on the
recommendations of the Council, specify, by notification, the transactions that are to be
treated as—
(a) a supply of goods and not as a supply of services; or
(b) a supply of services and not as a supply of goods.
Section 7 is as above, can anyone justify where it says that the transfer from Factory to branch taxability?
09 August 2017
Is there a concept of Removal of Goods from Factory in GST? if so what is the implication on that?
09 August 2017
The tax implication is only on supply; Movement within same GSTIN does not constitute supply and has no tax implications.
10 August 2017
Is there a rule gst similar to removal of goods from factory concept in excise duty
11 August 2017
There is no concept of tax on removal like excise.. GST is based on removal for supply concept. Where a removal is done that cannot be termed as supply as per Section 7 of the CGST Act, no tax implication would arise.
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