No GST liability on movement between two units working under same GSTIN

In re Crown Craft India Private Ltd. (GST AAR Rajasthan)

Question 1: Since our present and new unit (situated within the Rajasthan state) would have same GSTIN therefore sending goods/ raw material/ capital goods from one unit to other would not comprise supply of goods or services. In such circumstance would we require to pay GST on such movement of goods/raw material/ capital goods?

Answer: Being same GSTIN of both the units (present & new unit), there is no occurrence/constitution of ‘supply’ in respect of movement of raw material, semi-finished, finished, capital goods between these two units within the state. Therefore, no liability of GST would arise for such movement between two units working under same GSTIN.

Question 2: If we have to issue challan for transfer of goods from one unit to other what value is to be considered for E-way bills if that is to be issued?

Answer: For transfer of the goods between two units, they would have to take a value of such goods as explained in Explanation-2 to SubRule (1) of the Rule 138 of the CGST Rules, 2017 and issue an Eway bill for such transfer (if required depending on value of such transferred goods as notified in Notification issued by the Commissioner, SGST).

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