Stock transfer

Stock transfers between ordinary locations, branches, or divisions with different GST registration numbers can generate GST. For locations in the same state with different registration numbers, the calculation uses CGST and SGST/UTGST. Transfers between states use IGST. For ordinary locations with the same registration number, GST isn't calculated. Bonded warehouse transfers have separate requirements, described later in this article.

Create a transfer order

  1. [!INCLUDE [open-search](../../includes/open-search.md)] Enter Transfer Orders, and then choose the related link.
  2. Select Transfer-from Code and Transfer-to Code on Transfer Order header. State Code and GST registration number should be filled on the location master.
  3. Select Item on Transfer Order line. GST Group Code, HSN/SAC Code should be filled on Item.

For example, inventory for INR 1000 is being transferred from one location to another and 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 on INR 1000.

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 appears in the Fact Box as following:

    Component Amount
    GST Base Amount 1000
    IGST 180
    CGST 90
    SGST 90

Post the transfer shipment, and then post the receipt. The following tables show the example entries for each stage.

  • GL Entries for shipment transaction in case of Interstate stock transfer are as following:

    Particulars Amount
    Unrealized Profit Account 180
    IGST Payable Account -180
    Inventory Adjustment Account 1000
    Inventory Account -1000

  • GL Entries for receipt transaction in case of Interstate stock transfer are as following:

    Particulars Amount
    IGST Receivable Account 180
    Unrealized Profit Account -180
    Inventory Account 1000
    Inventory Adjustment Account -1000

  • GL Entries for shipment transaction in case of Intra-State or Intra-Union Territory stock transfer are as following:

    Particulars Amount
    Unrealized Profit Account 180
    CGST Payable Account -90
    SGST/UTGST Payable Account -90
    Inventory Account -1000
    Inventory Adjustment Account 1000

  • GL Entries for receipt transaction in case of Intra-State or Intra-Union Territory stock transfer are as following:

    Particulars Amount
    Unrealized Profit Account -180
    CGST Receivable Account 90
    SGST/UTGST Receivable Account 90
    Inventory Account 1000
    Inventory Adjustment Account -1000

Stock transfer for bonded warehouse

Bonded warehouse transfer means transfer of stock from customs warehouse to company warehouse. This scenario occurs when material is stored at customs warehouse before moving it to company’s warehouse. In this case, the customs duty is paid only when material is moved from bonded warehouse.

  1. [!INCLUDE [open-search](../../includes/open-search.md)] Enter Transfer Orders, and then choose the related link.
  2. Select Transfer-from Code and Transfer-to Code on Transfer Order header.
  3. State Code and GST registration number should be filled on Transfer-to Location.
  4. Bonded warehouse field should be marked true on Transfer-from Location.
  5. Select Item on Transfer Order line. GST Group Code, HSN/SAC Code should be filled on Item.
  6. Enter GST Assessable Value and Custom Duty Amount on Transfer Order lines. System calculates GST on GST Assessable Value and Custom Duty Amount, not on transaction line amount.
  7. Enter Bill of Entry No., Bill of Entry Date, and Vendor No. on the transfer order header. These fields and GST Assessable Value are validated when you receive the bonded warehouse transfer.

GST Service Transfer

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