Merger of two GSTIN in the same State - Procedure to be followed

[haribabu koduri]

There are two registrations in one State. There is one manufacturing unit under each of the registrations. To merger both the GSTINs, is it required that -

(i) finished goods to be sold by raising tax invoice from one unit to another unit;

(ii) stores and spares to be sold by raising tax invoice from one unit to another unit and

(iii) plant and machinery to be sold by raising tax invoice from unit to another unit.

The second unit (which is going to be continued) can avail ITC. But, transfer of stores and spares, plant and machinery is a cumbersome task, involving huge documentation. Since both the units are of same company, is it required to transfer stores & spares and Plant & machinery also by raising tax invoice.

Experts are requested to give their views.

AI Summary

Company with Two GSTINs in Same State Seeks Merger; Experts Advise on Invoices and ITC Utilization A company with two GSTINs in the same state seeks to merge them into one. The discussion addresses whether tax invoices are needed for transferring finished goods, stores, spares, and machinery between units. Experts suggest consulting local tax offices and recommend applying for an 'additional place of business' for the unit to be merged. They advise raising tax invoices for all goods, ensuring all available ITC is utilized, and following specific procedures for transferring capital goods to avoid litigation. It is suggested that the merger could be treated as a sale of a going concern, potentially exempting it from GST.