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Business transfer

lokhande mahadev (99 Points)

01 April 2019

what is the process of stock transfer under gst?

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9 Replies

RAJA P M ("Do the Right Thing...!!!") (128004 Points)
Replied 01 April 2019

From where to where...?!

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Mohit Jagnani (Professional - CA firm) (524 Points)
Replied 01 April 2019

Hi Mr. Mahadev

Stock transfer to distinct entity is taxable under gst

For the purpose of gst we can lossely iterate that the entity with same pan are distinct entity

For further assistance kindly reach out to us

HAPPY TO HELP

MOHIT JAGNANI
8820448170

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 01 April 2019

There is nothing like Stock Transfer in GST... its only Supply or Not Supply

Mohit Jagnani (Professional - CA firm) (524 Points)
Replied 02 April 2019

I guess not everyone can be given reply with sections and rule. It's always good to speak the language ur recepeint understands Indeed there is a term stock transfer its just taxability has been defined in gst

bright barathi (16 Points)
Replied 02 April 2019

you may refer itc 2 & itc 1

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Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 02 April 2019

No ...

In Terms of Article 366(12A) As inserted in the constitution vide the Constitution 101st Amendment Act 2016 the term ^Goods & Service Tax " is defined & its supply which determine the Taxabilitiy of All Transactions.

Yes Taxability of Transfer between two units of a co. will depend upon the factor that whether the transfer is taking place between units under single registration (Intrastate : GST not Attracts) or Between units covered under different registration (Interstate :GST attracts).

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RAJA P M ("Do the Right Thing...!!!") (128004 Points)
Replied 02 April 2019

Yes... Fully agreed to Mr Pankaj Rawat's view...

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Mohit Jagnani (Professional - CA firm) (524 Points)
Replied 02 April 2019

@ pankaj

I guess you have not taken into consideration schedule I "ACTIVITIES TO BE TREATED AS SUPPLY EVEN IF MADE WITHOUT CONSIDERATION"

wherein under entry no. 2 it has been provided that "Supply of goods or services or both between related persons or between distinct persons as specified in section 25, when made in the course or furtherance of business"

Further section 25 (4) states that - "A person who has obtained or is required to obtain more than one registration, whether in one State or Union territory or more than one State or Union territory shall, in respect of each such registration, be treated as distinct persons for the purposes of this Act."

Thus from the above it is evident that transaction is taxable irrespective of inter state or intra state stock transfer. as now entities can hold multiple registration in single state.

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