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

Stock transfers taxable under GST to ensure input tax credit follows goods and prevent revenue leakage.
Stock transfers between business locations are treated as supplies under GST and are taxable, with depots and branch offices regarded as distinct persons; the transferee may claim input tax credit. Taxing transfers ensures that input tax credit follows goods to the place of consumption and that tax revenue accrues to the State of consumption; proper documentation is necessary to make tax and credit flow traceable.