GST Application on Intercompany and Intracompany Stock Transfers

Businesses with pan-India operations transfer stocks between branches to meet order delivery timelines in different regions.

In the GST system, supplying goods is taxed regardless of whether payment has been made or agreed. SStock transfers can happen within the same state or between different states. The applicability of GST on intercompany and intracompany stock transfers depends on the following scenarios:

• Intracompany transfers– If the transferring and receiving units are in the same state and have the same GSTIN, GST isn’t applicable. Create a transfer order to move the goods.

  If the transferring and receiving units are in the same state but have different GSTINs, GST applies. Create an intercompany sales order for the transfer.

• Intercompany transfers– If the transferring and receiving units are in different states but share the same GSTIN, GST isn’t applicable. Create a transfer order to transfer the goods.

  If the transferring and receiving units are in different states and have different GSTINs, GST applies. Create an intercompany sales order for the transfer.

Related Topics

• Setting Up the India Localization SuiteTax Engine
• Tax Deduction at Source
• Tax Collection at Source
• Goods and Services Tax
• Electronic Invoicing for India
• Sending Customized Notifications
• Voiding Transactions for India

General Notices