Rajasthan AAR: No GST on Movement Of Goods Between Two Units Under Same GSTIN

The Rajasthan Authority of Advance Ruling (AAR) has ruled that Goods and Services Tax (GST) is not payable on the movement of goods between two units registered under the same GST Identification Number (GSTIN).

M/s Mody Education Foundation (applicant) is in the business of manufacturing thermocol, tableware, PET Bottles, kitchenware & tiffin, plastic casseroles, toilet ware, plastic chairs, steel household, and flasks. The applicant has been availing of the Input Tax Credit (ITC) on inputs, input services, and capital goods used to manufacture the final product as per the Central GST (CGST) Act, 2017.

The applicant has a manufacturing unit in Jaipur, consuming all inputs, input services, and capital goods to manufacture the final goods at the same place and then dispatching goods to their registered premises.

However, the applicant plans to expand the operations by increasing the capacity to manufacture the finished goods. Accordingly, they are planning to establish a new unit in the Jaipur district, which is within Rajasthan, as the space on existing premises is limited.

For any clarifications/feedback on the topic, please contact the writer at dvsr.anjaneyulu@clear.in

You May Also Like

Taxation of dividend income received on or after 1 April 2020 (FY 2020-21)

You may receive a dividend from your equity or mutual fund investments.…
Gold Jewellery

24K Gold Rate in India for November 2019: Week 4

The fourth week began with the gold rate in India holding at…
GSTR-9

CBIC has notified an extension of two months to various GST compliance

The government of India has notified yet another extension for the completion…
Tax Exemption

CBDT issues guidelines under section 194Q

The income tax department issued a circular dated 30th June 2021 laying…