Payment of expenses of one business vertical by another bv

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This query is : Resolved

Uday Kiran (Querist)

06 October 2017 Sir.. suppose a company has two GST registrations in two different states like 'X' & 'Y'. where the bill raised by a customer in the name of X but Y is making payment for the same and then expense will be transferred by Y to X? Can they do so? What will be the answer if such company has two GST registrations in one state?

RAJA P M

RAJA P M (Expert)

06 October 2017 Payment can be Paid / Inter Adjustments are allowed.
But, Expenses can't Inter changes to Inter State branches. It ll be treat separate books of accounts...

RAJA P M

RAJA P M (Expert)

06 October 2017 In case Two GSTIN in Same state.,

Also above said reply is follow...

Message likes : 1 times

Udaya Chandran

Udaya Chandran (Expert)

06 October 2017 I agree with Mr.Raja. Payment can be made among inter state branches. Booking of expenses should be for related GSTIN only.

Message likes : 1 times

Uday Kiran

Uday Kiran (Querist)

06 October 2017 Thank you sir.. but i need some more clarification like... suppose Apollo has two GST registrations in one state for pharmacy division and hospital division separately. Now hospital division purchased some goods but bill raised in pharmacy division. Now pharmacy division making payment for the same, can they do so ? can the pharmacy division take input on such goods ? Entry passed in pharmacy books as follows:
Apollo hospital A/c Dr
Input GST A/c Dr
To Customer A/c
So, in the above case expense transferred using inter branch adjustments accounts, can it be allowed?

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