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stock transfer or branch transfer without consideration

Lahari (Student CA IPC / IPCC) (44 Points)

06 April 2018

Will stock transfer or branch transfer without consideration between different locations (with separate GST registrations) of DIFFERENT legal entity, qualify as 'supply' under GST ?

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4 Replies

RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 06 April 2018

Different GSTIN then Sales proceeds only available and GST applicable. No way for stock transfer to other "GSTIN".

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CA Rashmi Gandhi (Chartered Accountant) (86461 Points)
Replied 06 April 2018

As per Schedule I of GST, any supply by principal to his agent or by agent to his principal with or without consideration is considered as supply. So, the stock transfer or branch transfer is qualify as supply.

Rohit Kumar Singh (Founder - TaxMarvel Consulting Services LLP) (9467 Points)
Replied 06 April 2018

refer Schedule I to CGST act which provides that inter state stock transfer between distinct or related persons even without consideration is taxable

Lahari (Student CA IPC / IPCC) (44 Points)
Replied 06 April 2018

As per schedule l of CGST, transactions b/w different locations of SAME legal entity without consideration is 'supply'. But my doubt is what if the transactions are b/w different locations of DIFFERENT entity without consideration?..there is no relationship b/w the 2 entities of any sort. will it be considered as supply?