Self consumption under GST

[Guest]

Sir,

We have RMC (Ready mix concrete) Plants within the State and they were included as additional place of business under GST migration.

We send cement from our plant to RMC. Since it is Stock transfer within the State no GST is chargeable. Cement is used for self consumption. While RMC plant manufactures Ready mix concrete and made further sale how it is to be taxed?

[Himansu Sekhar]

Supply includes activities that are with considerations except schedule I items. Is it a supply? Further taxable event occurs when the supply happens between the registered unit.

[Guest]

It is assumed that you have single business verticle in a state. Hence dispatch of cement to RMC will not amount to Supply , not liavable to GST. Supply from RMC plant will be taxed normally...

AI Summary

Self-consumption under GST affects whether intra-state stock transfers count as supply and alter taxability of downstream sales. Whether intra-state dispatch of cement to an affiliated RMC plant is a taxable supply hinges on if it is a transfer between distinct registered persons or an internal transfer for self-consumption; where the units form a single business vertical in the State, such stock transfer is not ordinarily a supply, while manufacture and sale of ready-mix concrete by the RMC is taxable when supplied.