A business with more than one location moves stock all the time: raw material from the main godown to a plant, finished goods to a depot, spares to a branch. The question for each move is simple: is it inside one GST registration or between two?
01Same GSTIN: a delivery challan
Moving goods between two places on the same registration, such as a plant and a godown in the same state, is not a supply. It goes on a delivery challan. If the value is above the e-way bill limit for that movement, an e-way bill is needed even though no tax is charged.
02Different GSTINs: a tax invoice
Each state registration is a separate taxable person. A transfer from your Gujarat plant to your Maharashtra depot is a supply, even without any consideration, under Schedule I of the CGST Act. It needs a tax invoice with IGST, an e-invoice if you are covered by e-invoicing, and an e-way bill.
The receiving branch claims the IGST as input tax credit, so the tax is usually neutral across the company. The cost is cash: the tax is paid when the goods move and recovered only when the receiving branch uses the credit.
What value to use
Rule 28 of the CGST Rules sets the value. Where the receiving branch can take full credit, the value on the invoice is accepted as the open market value. Many companies use cost plus a fixed margin, or the normal dealer price, and apply it the same way every time. Agree the method with your CA and write it down.
03Keeping stock right at both ends
Most stock mismatches in multi-location businesses come from goods in transit. The sending location has reduced its stock; the receiving one has not yet added it.
- Use a transit location
- Stock leaves the sender into "in transit" and leaves transit only when the receiver confirms.
- Receive against the transfer document
- , never as a fresh entry. Short or damaged quantities are recorded as a difference on that transfer.
- Review open transfers weekly
- Anything in transit longer than the normal travel time needs a call.
In MatruOS, every plant, godown and branch has its own stock, transfers create the right document for the registration, and goods in transit are shown until received.