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CA Intermediate · Taxation · Supply under GST

Apex Ltd, Mumbai, a registered person, transfers goods worth Rs 5,00,000 (cost) to its own branch in Gujarat, which has a separate GST registration in that state, without any consideration. Further, Apex's Mumbai office sends goods to its other Mumbai warehouse, registered under the same PAN in Maharashtra under the same GSTIN. Which statement is correct?

Only the transfer to the Gujarat branch is a supply. Establishments of the same entity in different states with separate registrations are distinct persons, and Schedule I treats such transfers as supply even without consideration. Movement within the same GSTIN in Maharashtra is not between distinct persons and is not a supply.

  1. ABoth transfers are supplies
  2. BNeither transfer is a supply
  3. COnly the transfer to the Gujarat branch is a supplyCorrect
  4. DOnly the transfer to the Mumbai warehouse is a supply

Explanation

Schedule I makes supply of goods or services between distinct persons (establishments of the same person in different states with separate registrations) a supply even without consideration. The Gujarat branch is a distinct person, so the transfer is a supply. The Mumbai warehouse under the same GSTIN is the same person, so no supply arises.

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