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Material transfer

E.KALAIKOVAN (Sr. Accounts Manager ) (340 Points)

21 July 2020

HO purchase material. Materials are delivered in HO with invoice. Thereafter HO transfer the material to Branch to use the materials. What is procedure to send the material to Branch. The branch and HO are in difference states

HO is not preparing Invoice and E-Way bills, simply sent the material to branch

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3 Replies

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 21 July 2020

Different states then must be treat as Sales from home to bo. transfer not applicable in GST regime except intra state movements...

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Vijayprakash P (1313 Points)
Replied 21 July 2020

The following Branch transfers are taxable. 1.Intrastate stock transfer:Taxable on ly when the entity has more than one registration in one state 2.Inter-state stock transfer :Transfer between two branches/units located in different states under the same PAN will be taxable. 3.As per the E way Bill റിലീസാ manufacturer (supplier) is required to generate the e way bill for stock transfer or Branch transfer if the value of consignment exceeds Rs. 50000. 4.An internal purchase order in triplicate is created for stock transfer between Branches and Warehouses.

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annu Goyal (1102 Points)
Replied 21 July 2020

As HO and branch both are in seprate state it means both have different registration,
As per GST these are considered as Deemed Distinct person under sec 25(4)

soo material transfer to branch even without consideration is consider supply under sch-I
Soo make the proper Invoice and make the entry in respective GST return
and in case amount is more than 50000/- e way also have to generate

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