STOCK TRANSFER-GST COMPLIANCE

Under the Goods and Services Tax Act, 2017, GST is chargeable on any ‘Supply’ of Goods and services, as distinct from a Sale in the accepted commercial sense. Therefore, even internal stock transfers between warehouses also will be considered as ‘supply’, attracting GST. However, stock transfers within the same state are exempt from GST. For inter-state transfers, GST is applicable at the regular rates on which Input Tax Credit [ITC] can be claimed. If the value of the supply is over Rs.50,000, E-way bill is mandatory.

The process of GST-compliant stock transfer in CREST ERP involves the following steps

1. Create a Stock Transport Order (STO)
2. Issue stock and Ship the STO
3. Print Stock Transport Order and E-waybill (if applicable)
4. Receive shipment at the destination Facility

The method of handling stock transfers under GST is explained in the following sections