Taxability of Inter State stock Transfer under GST
By: – Balasubramanian Natarajan
Goods and Services Tax – GST
Dated:- 4-11-2016
Presently interstate Stock transfers are not taxable under CST on submission of duly completed Form F.
CBEC in their FAQ has clarified as under:
Q 7. Are self-supplies taxable under GST?
Ans. Inter-state self-supplies such as stock transfers will be taxable as a taxable person has to take state wise registration in terms of Schedule 1(5). Such transactions have been made taxable even if there is no consideration. However, intra-state self-supplies are not taxable.
Q 6. Whether supplies made without consideration will also come within the purview of Supply under GST?
Ans. Yes only those cases
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
shall apply for determining what is, or is to be treated as a supply of goods or a supply of services.
SCHEDULE I
MATTERS TO BE TREATED AS SUPPLY WITHOUT CONSIDERATION
1. Permanent transfer/disposal of business assets.
2. Temporary application of business assets to a private or non-business use.
3. Services put to a private or non-business use.
4. Assets retained after deregistration.
5. Supply of goods and / or services by a taxable person to another taxable or nontaxable person in the course or furtherance of business.
Provided that the supply of goods by a registered taxable person to a job-worker in terms of section 43A shall not be treated as supply of goods
Second proviso to Section 9(1) of Model CGST/SGST Law is as under
P
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
be seen that the turnover of a taxable person having the same PAN number is clubbed together all purposes such as:
* For Registration – For determining threshold limit
* For Composition Scheme
Supply has been defined to cover in its scope only when it is for consideration with the exceptions provided therein,
One such exemption so as to treat them as supply even when there is no consideration is supplies specified in Schedule I
It s interesting to note that sl no 5 of the said schedule I covers “Supply of goods and / or services by a taxable person to another taxable or nontaxable person in the course or furtherance of business.
It comes in to play only when the supply is by one Taxable person to another taxable or non taxable perso
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =