Movement of unsellable stock to other distributor

Summary: If you share the same GSTIN, use a Delivery Challan for the stock movement. If you operate under different GSTINs, you must issue a Tax Invoice and pay GST as it is treated as a taxable supply, regardless of the goods being "unsellable." Always check with a tax professional regarding the specific financial "adjustments" the company is making to your balance, as those may have separate accounting and tax requirements.