INTER-STATE VS INTRA-STATE STOCK TRANSFERS (GST)

defination of INTER-STATE = Outside State
defination of INTRA-STATE = Within  State

any person has one or more than one GST registration in one state or more than one State.whatever,however it is. Inter-State stock transfer is always taxable . It means IGST will be levied.

Intra-state stock transfer is taxable only when any person has more than one GST registration in one state. For example,
Factory located in Tamil Nadu and warehouse is also located in the same state (i.e. Tamil Nadu) however,
registered separately under GST, transfers between them treated as supply. Hence, CGST plus SGST will be levied.

illustration:
Ganesh Trading has head office in Telangana and two branches (i.e. Branch office -I in Telangana and Branch
office -II in Andhra Pradesh). Stock transfers between Head office and Branch office within the same state where
no separate registrations, GST is not levied. Whereas stock transfers between Head office and Branch office at

inter state level, IGST will be levied.

Conclusion:

From the above it is evident that revenue of inter-State sale will not accrue to the exporting State and the exporting

State will be required to transfer to the Centre the credit of SGST/UTGST used in payment of IGST.

The Centre will transfer to the importing State the credit of IGST used in payment of SGST/UTGST.

The inter-state adjustment will be made by central clearing agency, hence assessees will not be concerned with

such adjustment at all.

About Commerce Now

Hi, Myself CMA Mousam Roy having more than 5 years experience in commerce field,teaching field as well as professional field with working with PSU and big Firm.