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

Merger of GST registrations requires transfer of input tax credit via prescribed form, invoices for goods, and capital goods procedure.
Merger of two GST registrations in the same State requires filing prescribed electronic details to transfer unutilised input tax credit, acceptance by the transferee to credit that ITC, and accounting by the transferee for inputs and capital goods. Practical steps include adding the premises as an additional place of business on the continued registration, effecting intra-entity supplies by tax invoice for stock and stores, following the statutory procedure for capital goods adjustments, and surrendering the redundant registration after discharging outward liabilities and maintaining appropriate stock records.