Home
Interstate and Intra state Stock transfer in GST regime

Interstate and Intra state Stock transfer in GST regime

Interstate and Intra state Stock transfer in GST regime

Under GST, levy of tax is on supply which includes transfers to distinct persons, and transfers are taxable under the following two cases:

 

  • Intrastate stock transfer: Taxable only when the entity has more than one registration in one state. These entities will be considered as ‘distinct persons’.Otherwise Hence no GST will be levied on such transactions under section 9 of CGST Act.
  • Interstate stock transfer: Transfer between two branches/units located in different states under the same PAN will be taxable.Hence IGST will be levied in such type of transaction of Section 5 under IGST Act.

GST is levied on the transaction value when price is the sole consideration received for supply and when supply is not between related or distinct persons. As a result, on stock transfer, the transaction value cannot be applied since it is a supply between 2 branches of the same entity, which is referred to as a distinct person. Hence, for stock transfers, the value of supply should be calculated by applying the following metrics:

Leave a Comment

*

*