Inter branch transfer in gst

This query is : Resolved

Puja Sharma (Querist)
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03 October 2018 In GST if an assesse is having its branch in another state, then the same will be treated as an distant person and separate registration is to be taken for that.

Suppose the HO purchases goods for Rs. 8 with MRP of Rs. 20. Earlier it uses to make branch transfer entry at zero value and sell at Rs. 15 to the wholesaler from the branch. The margin is Rs. 7 i.e. 46.67%.

Now the transaction involving the branch transfer will be treated as a separate supply. At what price the HO should transfer the goods to the branch under GST?

CA Deepak Rawat

CA Deepak Rawat (Expert)
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04 October 2018 Branch transfer will treat as taxable supply

Puja Sharma

Puja Sharma (Querist)
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04 October 2018 Yes it will be treated as a different supply transaction. I want to know how to execute the branch transfer. Whether such trf wll create economic effect post GST for the branch?

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Vishakha Kejriwal.

Vishakha Kejriwal. (Expert)
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04 October 2018 Please refer to Rule 28 of the CGST Rules for valuation of supply for goods transferred between distinct persons. It is generally the open market value of the goods.