Transaction value on stock trfr to depot

[mk Jain]

Dear Sir,

If we are doing stock transfer from manufacturing plant to depot's, In GST regime how much value we consider.

Actual value

Cost +10%

90% of value

Rgds,

MJ

[Himansu Sekhar]

In my view, another option is there, where the gst is available as credit, the value declared in the invoice is the open market price

[mk Jain]

Dear Sir,

Yes we can transfer on open market price but question is how can we use the setoff at depot level expenses.

Ex ; We transferred the goods on 100 rupees as market price then depot also billed to customer on 100 rupees. Depot is taking some ITC credit on services like loading, transportation, Manpower etc. then how can use this set off.

Rgds,

MJ

[Himansu Sekhar]

Depot will pay gst. During that time credit of the gst paid on loading and other charges will be taken. Utilising the credit the gst will be paid.

[Himansu Sekhar]

Depot price normally more than the factory gate price. Because the expenses are added here when goods sold to customer.

AI Summary

Stock transfer valuation under GST: invoice at open market price and depot may claim input tax credit to offset GST.
Valuation for intra-company stock transfers is treated by invoicing at the open market price where GST credit is available, enabling depots to claim input tax credit on service costs (loading, transportation, manpower) and apply that credit against GST payable when selling to customers; depot prices typically exceed factory gate prices due to added depot-level expenses.