GST on Capital goods moving from one state to another state-reg

[N Balachandran]

Sir,

We imported equipments for setting up of coke oven plant in West Bengal about 6 years back but due to environment clearance, the project could not be taken up in west bengal and moved to Orissa about 4 years back. Since no land is available in Orissa, again, we plan to move to West Bengal now for setting up the coke oven plant near Haldia. Please clarify, whether IGST is applicable when we move from Orissa to Haldia West bengal?

Regards

N.Balachandran

[ANITA BHADRA]

Dear Sir

I do not think , IGST is applicable here. Unless you are registered in GST both in West Bengal and Orissa and transferring Assets from West Bengal to Orissa

You are setting up business in other state and simply shifting Asset to that state should not be considered as supply under GST .

Experts are requested to share their views.

Regards

[Kishan Barai]

As the plant is not yet started, sales does not arise, company is also not registered in GST yet.

NO GST would be my answer

AI Summary

IGST applicability on interstate transfer of capital goods: shifting assets for business setup generally not treated as supply. IGST applies to interstate movement of capital goods only if the movement amounts to a taxable supply or involves transfers between GST registrations; mere shifting of assets to set up business in another state is not treated as supply. Where the plant has not started and the entity is not registered for GST, contributors conclude no GST arises on the interstate transfer.