GST on Inter Branch Transaction

[Sanjeev Sharma]

A Delhi based Company is having a sales and marketing office in Mumbai. All goods ( which are exempted from GST) are sold to the customers directly from Delhi.

Mumbai office does not make any taxable supply and therefore not registered under GST.

Does Mumbai office is required to raise bill on Delhi Office for sales and marketing services provided and to charge GST.

AI Summary

Taxable marketing services: branch must register in state of supply and invoice head office, charging applicable IGST.
Mumbai branch is a distinct person when providing taxable sales and marketing services to the Delhi head office and must register in the State of supply, raise an invoice charging applicable IGST to the head office, and maintain separate books; aggregate turnover for registration includes exempt goods sold by the head office. Alternatives include issuing a bill of supply for exempt movements with an e-way bill or obtaining ISD registration to distribute or set off input tax credits.