Self Supply Taxable under GST ?

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 Can you identify, whether self supply taxable under GST or not ?

Lets Understand the term and learn the GST implication in this case-


In maximum cases we can see that  we are supplying ourselves  and can not identify the GST implication but in this article we are going to clear your confusion - Read this article in complete to clear your doubt.
As per section 25(4) and section 25(5) of the CGST Act, 2017, two different registration of a same person are treated as distinct person and as per para 2 of Schedule I the CGST Act, 2017 read with section 7(1)(c) of the CGST Act, 2017 supplies between distinct person in the course or furtherance of business is treated as supply, although without consideration. Therefore, interstate self supplies such as stock transfers, branch transfer or consignment sales shall be taxable under IGST even though such transaction may not involve payment of consideration.

Every supplier is liable to register under the GST law in the state or union territory from where he makes taxable supply of goods or services or both in terms of section 22 of the CGST Act. However intrastate self supplies are not taxable, subject to condition that two registration are not opted by the taxable person for two different places of business.

Let`s take an example-

Suppose Mr. Gupta Industries, a manufacturer of machines, Have a factory in Gujarat and a depot in Patna Bihar, both the establishment are registered in respective state. 
Machines manufactured in factory in Gujarat are sent to depot in Patna without consideration, for sale
from depot to the customers. Does it qualify as Supply?

As per section 25(4) and section 25(5) of the CGST Act, 2017, two different registration of a same person are treated as distinct person and as per para 2 of Schedule I the CGST Act, 2017 read with section 7(1)(c) of the CGST Act, 2017 supplies between distinct person in the course or furtherance of business is treated as supply, although without consideration.

Therefore, supply of machines between Gujarat factory and Patna depot qualify as supply u/s 7 of CGST Act, 2017.

Thank you.👍 

 




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