Economy

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

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