GST on transfer of goods from one state to another state

[N Balachandran]

Sir,

We have plant machinery imported from china and kept in Orissa for setting up of Ammonia Plant. Due to non availability of Land in Orissa, we are planning to shift the entire equipment to West Bengal for setting up of Ammonia Plant. whether GST is applicable when we are moving from Orissa to West Bengal? If so,

The production of ammonia will start only after 5 years, what will happened to Credit of GST paid on these equipments?

Pl clarify

Regards

N.Balachandran

AI Summary

IGST on interstate movement: whether shifting plant and machinery is a taxable supply or a non taxable relocation depends on characterization.
Inter state shifting of plant and machinery may be treated either as a taxable supply attracting IGST (with recipient eligible for Input Tax Credit) or as a non taxable movement not intended to be taxed; factual factors such as import entry address and characterization as stock transfer versus relocation for installation affect the levy. Credit on GST paid can be taken within the statutory period and, once lawfully availed, may be utilised later when production begins.