Service transfer

Service transfers between locations, branches, or divisions having different registration numbers are taxable under GST. In such a case, if services transferred within the state from one location to another, then CGST and SGST/UTGST is levied, otherwise, where the registration number is same, there shall be no levy. Service transferred from one state to another state, then IGST is levied.

Create a service transfer order

  1. [!INCLUDE [open-search](../../includes/open-search.md)] Enter Service Transfer Order, and then choose the related link.
  2. Select Transfer-from Code and Transfer-to Code on Service Transfer Order header. State Code and GST registration number shouldn't be blank on Location card.
  3. Select Ship Control Account and Receive Control Account on Service Transfer Order header.
  4. Select the G/L account in Transfer From G/L Account No. on Shipment Lines and Transfer To G/L Account No. on Receive Lines. The G/L account must have a GST Group Code and an HSN/SAC Code.
  5. Enter Transfer Price and Shipment Date. Choose Preview Posting to review the entries, and then choose Post and select Ship.
  6. Enter Receipt Date, and then choose Post and select Receive.

Shipment requires the order to be Open and have a Ship Control Account. Receipt requires the order to be Shipped and have a Receive Control Account.

The transfer-from and transfer-to locations must differ. The service transfer order rejects locations that have the same nonblank GST registration number or the same nonblank ARN.

For example, service for INR 10000 is being transferred on which 18% GST (9% CGST and 9% SGST/UTGST in case of Intra-State or Intra-Union Territory transaction or 18% IGST in case of Inter-State transaction), has to be charged.

The rates illustrate the example. Use CGST and SGST for the intrastate case, or IGST for the interstate case—not all three components together.

  • GST Calculation on Service Transfer Order appears in the Fact Box as following:

    Component Amount
    GST Base Amount 10000
    IGST 1800
    CGST 900
    SGST 900

  • On posting of shipment in case of Intra-State or Intra-Union Territory service transfer, GL Entries are as following:

    Particulars Amount
    Inter-location Control Account 11800
    CGST Payable Account -900
    SGST/UTGST Payable Account -900
    Services Account -10000

  • On posting of receipt in case of Intra-State or Intra-Union Territory service transfer, GL Entries are as following:

    Particular Amount
    Services Account 10000
    SGST/UTGST Receivable Account 900
    CGST Receivable Account 900
    Inter-location Control Account -11800

  • On posting of shipment in case of Interstate service transfer, GL Entries are as following:

    Particular Amount
    Inter-location Control Account 11800
    IGST Payable Account -1800
    Services Account -10000

  • On posting of receipt in case of Interstate service transfer, GL Entries are as following:

    Particular Amount
    Services Account 10000
    IGST Receivable Account 1800
    Inter-location Control Account -11800

GST Stock Transfer

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