16 June 2017
We have one registration under GST for our various branches in Chennai and also branches in Tamilnadu. We move goods from Chennai office ( Head Office) to branches in Chennai and also to branches in Tamilnadu. What will be implication of CGT. Are we supposed to pay CGST and SGST on transfer of goods from our Chennai Office to branches in Chennai and also to branches in Tamilnadu. If yes in my opinion sales and purchases will be inflated. Please advise me the correct position Thanks
16 June 2017
Supply from Chennai HO to branch of Chennai or other branches in Tamil Nadu is not a taxable supply, you need to raise delivery challan for the movement of goods. Supply from Chennai to any branch in other State will be taxable supply and need to pay IGST. Further, other branch of other State will get the Input Tax Credit of said IGST paid subject to other restrictions for availment of ITC. Therefore, if Input tax Credit is available, then such IGST will not be cost for the organization.
CAclubindia
