GST implication on transfer of IT asset from corporate location (GST registered) to sales person located in different states (non registered under GST)

[Rohit Pandya]

Hi team, I am procuring IT assets like laptop, mobile device at a central location (i.e. corporate office - registered under GST) and then transferring these IT assets to our sales persons (Employee) located in different states which is not registered under GST. Is it necessary to pay GST while transferring these IT assets vide courier along with B2CS supply invoice.

Will the answer to above question change if we are recipient sales person is located in a GST registered state (ISD registration/regular registration).

In scenario 1, my GST ITC will be cost if I pay in the registered state and raise invoice as B2CS supply.

In scenario 2, my GST ITC will be cost if I pay in the registered state and raise invoice to a ISD registered premises. I will be able to avail ITC only in case of transfer of IT assets within 2 regular registrations of the same entity.

Please clarify this doubt. Thanks in advance for your comments.

AI Summary

GST on transfers of company IT assets to employees depends on registration and whether the transfer constitutes a taxable supply.
Whether GST applies to transfers of company IT assets to employees in other states depends on registration status and supply characterisation: if invoices are in the company's name with its GSTIN and goods are for business use, the company may claim input tax credit; if goods are capitalised with tax included in depreciation, ITC is not available. Employee services are outside GST; where no distinct recipient or registration exists, mere sending to employees ordinarily will not be a taxable supply. ISD cannot distribute ITC. Billing as "bill to" HO and "ship to" employee can support ITC under delivery-on-direction rules.