Stock transfer

[Phoenix Legal]

I have 4 factories situated in different states i.e. UP, Bihar, Telengana, and Rajasthan and is in manufacturing of exempted goods. I have a central warehouse situated in UP. The raw materials I prorcure for manufacturing of exempted goods are taxable. Usually, I directly supply the goods to the customers from my factories. At times, due to demand from one specific region, I shift the goods from factories to the central warehouse.

What will the implications on the ITC under gst law? Can I save the ITC on the stock transfer to central warehouse

AI Summary

Stock transfer of exempt finished goods: no GST levy and no entitlement to input tax credit on inputs.
Inter state transfers of exempt finished goods do not attract GST and therefore do not give rise to input tax credit entitlement; tax paid on inputs used for exempt supplies is not creditable. By contrast, transfers of raw materials are taxable and the purchasing unit may claim ITC. Proper invoicing and transport documentation (including e way bill details) is necessary to distinguish stock transfers from taxable supplies and to preserve or support ITC claims.