Stock Transfer
Stock transfers between locations, branches or divisions having different registration numbers are taxable under GST. In such a case, where registration number is same, if the shipment location and recipient location both are in the same state, then CGST and SGST/UTGST are levied, other-wise, where the registration number is same, there shall be no levy.
- Choose the
icon, enter Transfer Order, and then choose the related link. 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.
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.
GST calculation will appear in the Fact Box, as following:
Component Amount GST Base Amount 1000 IGST 180 CGST 90 SGST 90
Post the Transfer Order
GL Entries for shipment transaction in case of Interstate stock transfer, will be 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, will be 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, will be 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, will be 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 scenarios occurs when material is stored at customs warehouse before moving it to company’s warehouse. In this case the customs duty will be paid only when material is moved from bonded warehouse.
- Choose the icon, enter Transfer Order, and then choose the related link.
- Select Transfer-from Code and Transfer-to Code on Transfer Order header.
- State Code and GST registration number should be filled on Transfer-to Location.
Bonded warehouse field should be marked true on Transfer-from Location.
Select Item on Transfer Order line. GST Group Code, HSN/SAC Code should be filled on Item.
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.
Bill of Entry Number, Bill of Entry Date and Vendor Code on Transfer Order header should not be blank.