Closing Stock lying with Branch

[SURYAKANT MITHBAVKAR]

We have manufacturing of Pharma Machinery having branch within state.

As per GST Transitional Provisional Stock lying at the appointment of GST should not beyond one year from the appointment of GST Act.

In this regard, we have returned goods from our customer and same has been showing in form V register and lying as finished goods since last two years.

Can we transfer the same to our other branch on payment of excise duty and treated as input for that branch but this is not sale transaction.

[Himansu Sekhar]

Yes, you can do.

[KASTURI SETHI]

You can do so before 30.6.17. Thereafter, you will have to pay GST or IGST.

AI Summary

Transitional stock transfer: permitted to move returned finished goods to branch on excise payment before deadline, otherwise GST/IGST applies. Returned finished goods held as closing stock may be transferred to another in-state branch and treated as input on payment of excise duty, provided the transfer is completed before the transitional deadline; after that deadline the transfer will attract GST or IGST instead of transitional excise treatment.