GST IMPLICATIONS ON STOCK TRANSFERS

[Asked by Guest]

Dear Sir,

Please explain us when there is stock transfer within state which GST would be levied, IGST or CGST & SGST and additional 1% will leaviable.Please explain, thanks & regards.

[KASTURI SETHI]

If stock transfer is within State it would attract tax under CGST or SGST depending upon the product whether scheduled under CGST or SGST. No additional 1 % will be charged as it is meant for inter-state transfer. Moreover, still GST is at draft stage.Final opinion can be given after enactment only.

[Ganeshan Kalyani]

Intra state stock transfer should not be taxed and one GST registration will be offered first. So if one return is filed then there should not be tax on the same.

Dear Sir, Under GST regime payment should be done first or to file returns first please explain.

[Ganeshan Kalyani]

As of now it is just a draft and therefore it will undergo many changes.

Dear Sir,

Even though but as per this draft whether it would be required to do payment first of to file the returns first.

AI Summary

Intra state stock transfer GST treatment under CGST and SGST clarified, while procedural and inter state levy issues remain draft matters.
Intra state stock transfers are treated under CGST and SGST rather than IGST, with the additional 1% levy applying only to inter state transfers; views differ on whether a single GST registration prevents taxation on transfers within the same registration, and the draft status leaves procedural questions (payment versus return filing order) unresolved pending enactment.