Is GST applicable on inter-state stock transfer?

Is GST applicable on inter-state stock transfer?

Under the pre-GST scenario, inter-state or intra-state stock transfers are subjected to a levy of excise duty on the removal of goods. The same is not subject to VAT/ CST. Under the model of GST, tax is collected on the supply of goods with or without consideration being paid or agreed to be paid. Under the GST framework, companies have to register in each state they operate in. Every state is essentially treated as a different company, and transactions between them are taxable. When a company moves away from one state to another it also results in lower GST collections for the state. The full form of IGST is Integrated Goods and Services Tax. Under GST, IGST is a tax levied on all interstate supplies of goods and/or services or across two or more states/Union Territories. Only services provided by a GTA are taxable under GST. Services of transportation of goods by a person other than GTA are exempt. GST registration is not required if the individual supplies only exempt goods. GST does not apply to agriculturists. If the supplier or retailer has an annual income below ₹20 lakhs, you need not register for GST tax. Transfer Tax is a payment to the Commissioner of Stamp Duty at the rate of 2% of the sale price or value for which the property is transferred. Transfer Tax is borne by the vendor, but it is the purchaser who is required to pay over the Tax to the Commissioner, and recover the amount from the purchase price.

How GST is calculated for interstate and intrastate transactions?

What is the tax rate for Intrastate and Interstate transactions? The GST rate applied to “intrastate” and “interstate” transactions is the same. The GST rate for “intrastate” transactions is 10%. The tax should be charged on the total value of supply. If the transportation cost is included, then GST has to be charged at the same rate of tax charged on supply. For example, if the goods being supplied is charged at 18%, then you have to charge tax on transport cost also at 18%. Under the pre-GST scenario, inter-state or intra-state stock transfers are subjected to a levy of excise duty on the removal of goods. The same is not subject to VAT/ CST. Under the model of GST, tax is collected on the supply of goods with or without consideration being paid or agreed to be paid. Interstate supply – If in case the supply is interstate and the value of the goods is more than 50,000 than GST E Way Bill is mandatory to generate. Persons making inter-state supply of services are exempted from obtaining GST registration up to a turnover limit of Rs. 20 Lakhs (Rs. 10 Lakhs in special category states) Under GST, whenever goods worth more than Rs. 50,000 are transported from one place to another, an e-way bill is required. In case goods are transported without an e-way bill, the goods can be seized by a GST officer and penalty could be levied.

Is GST applicable on transfer of goods?

Goods and Services tax is a transaction based tax applicable on supply of goods or services and such supply includes transfer. Therefore GST is applicable whenever any goods or services are transferred from one related party to another. If you are selling handicraft goods then it is not required till you cross the annual turnover of Rs. 20/10 lakhs as applicable. If you are selling any other goods (selling interstate) then you are mandatorily required to get registered under GST. If the person is involved in 100% supply of goods which are not liable for GST, then no registration is required. The new gst registration online threshold for those engaged in the supply of goods has been raised to 40 lakhs (save for those making intra-State supplies in the states of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura, and Uttarakhand). Now, businesses have an option to obtain separate GSTINs for each branch in the same state or union territory, even though the said businesses are not different business verticals. In short, you can have more than one GST registration for multiple branches in the same state.

Is GST registration compulsory for inter state purchase?

Every supplier whose aggregate turnover in the current financial year exceeds the threshold limits will have to get registered under GST. However, certain category of persons are required to compulsorily get registered under GST: Interstate suppliers. Casual Taxable persons. To answer, if you have more than one branch or a multi-state business operation, obtaining a separate GST registration in each state is mandatory. This is because the basic rule is that a business must register in every state from where you intend to make outward supplies. 2) Who is liable to pay GST? In general the supplier of goods or service is liable to pay GST. However in specified cases like imports and other notified supplies, the liability may be cast on the recipient under the reverse charge mechanism. A business whose aggregate turnover in a financial year exceeds Rs 20 lakhs has to mandatorily register under Goods and Services Tax. This limit is set at Rs 10 lakhs for North Eastern and hilly states flagged as special category states. Also, the definition of taxable turnover has been changed to aggregate turnover.