Regarding Stock Transfer

[Rahul Gupta]

Hi

We are operating a branch of our business 25 kms away from our head office, under the same GSTIN. We used to do stock transfers on a daily basis to this branch. Instead of an invoice a stock transfer challan was issued along with the goods and no tax was levied.

We are concerned that whether these stocks will be taxable under the new GST structure? The reply we have been getting everywhere is that these intrastate stock transfers are not taxable under the new tax structure if the branches are operated under the same GSTIN. But noone has mentioned the exact Article number regarding the same.

Kindly help us out in this regard as we might have to shut down the branch if the goods are taxed. And if the goods can be transfered without charging any tax then kindly mention the article number wherein it is stated that these goods are not taxable.

Regards

Rahul Gupta

AI Summary

Business Owner Queries Tax Implications of Intrastate Stock Transfers Under New GST; Seeks Clarity on Non-taxability. A business owner inquires about the tax implications of intrastate stock transfers under the new GST regime, concerned about potential taxation that could affect operations. The consensus among respondents is that stock transfers within the same state under the same GSTIN are generally not taxable, as they are considered supplies for business purposes. However, clarity is sought on the specific article confirming this non-taxability. Responses emphasize the importance of proper documentation, such as creating accurate challans with GST details. The discussion highlights the GST framework's aim to ensure tax revenue distribution and input tax credit flow.