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No liability of GST would arise for movement of goods between two units working under same GSTIN. However, for transfer of the goods between two units, taxpayer would have to take a value of such goods as explained in Explanation-2 to Sub-Rule (1) of the Rule 138 of the CGST Rules, 2017 and issue an E-way bill for such transfer (if required depending on value of such transferred goods as notified in Notification issued by the Commissioner, SGST).

Levy of GST— In the instant case, the applicant is engaged in the manufacture of (i) Thermocol, (ii) PET Bottles, (iii) Tableware, Kitchenware & Tiffin, (iv) Toilet ware and Plastic casserole, (v) Steel ware Household, (vi) Plastic Chair and (vii) Flask with inner steel.

As per written submission made by the applicant, it is of the view that due to limited space at their present factory, they are planning to establish a new unit within the Jaipur district (within Rajasthan). The new unit would be manufacturing similar goods as they are manufacturing in their present registered premises. The new unit would also be used to manufacture semifinished goods which may be sent to their first unit for finishing and further sale to customers. This new unit which they are planning would be registered with their own PAN number and thus would be registered as additional place of business as per Section 25 of GST Act, 2017 and would have single registration number under GST Act,2017.

Questions raised for which advance ruling are as follows—

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?

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?

3. In respect of movement of raw material/capital goods/ semi-finished goods for further processing would the provisions ot job-work apply or we can send these goods on simple internal challan?

4. In respect of the above situation in question No. 1, would we require to issue E-way bill for such movement of goods from our one unit to other if the value of the goods to be moved is higher then the threshold limit required for issue of E-way bill in normal course.

5. will; would have to deal with the ITC available for each unit? We understand that since the two units would have same GSTIN then in such case we would have to maintain single ITC credit and the same would be used for discharge of our GST liability irrespective of the clearance of goods from either of the factory. Thus, can we use ITC for the goods/raw material capital goods received in one factory for payment of GST for the clearance made from second unit?

6. For purchase of raw material/ capital good do we have to order and mentioned separate factory address?

7. For invoice of clearance of goods does the applicant have to mention both addresses or the address of the concerned unit from which the goods are cleared?

Held that—

1.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.

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

3. As the question of the applicant does not fall under the ambit of sub section (2) of the Section 97 of the CGST Act, 2017 therefore, we retrain our-self from giving ruling on the question.

4. As the question of the applicant does not fall under the ambit of sub section (2) of the Section 97 of the CGST Act, 2017 therefore, we retrain our-self from giving ruling on the question.

5. Since applicant would be have single GST No. for both the units (Present & proposed unit) then as per Section 16(1) of the CGST Act, 2017 there would be only one ledger for the ITC credit therefore, they can use ITC for the goods/raw material/capital goods received in one factory for payment of GST for the clearance made from second unit or vice versa.

6. As the question of the applicant does not fall under the ambit of sub section (2) of the Section 97 of the CGST Act, 2017 therefore, we retrain our-self from giving ruling on the question.

7. As the question of the applicant does not fall under the ambit of sub section (2) of the Section 97 of the CGST Act, 2017 therefore, we refrain our-self from giving ruling on the question.