M/s PQR has three units situated in Bangalore, Delhi and Pune. The total sale from all these units of taxable supply is Rs. 54 lakh and export of goods Rs. 50 lakh during the financial year 2017-18.  However the value of individual supply from each said unit was:


Bangalore unit Rs.19 lakh and export of goods of  Rs. 20 lakh,  Delhi unit Rs. 18 lakh and export of goods Rs. 14 lakh and Pune unit Rs. 17 lakh and export of Rs. 16 lakh.


(a)                Discuss whether all units of M/s PQR required registration under GST.

(b)               Bangalore branch transfer of goods of Rs. 4 lakh to Delhi branch without any consideration. Whether such transfer covered under the purview of supply.



(a)               Section 22(1)- Every supplier shall be registered under GST in the State or Union Territory, where he makes taxable supply of goods/services or both, if his aggregate turnover exceeds ten lakhs in special category States and in other States exceeds 20 lakhs rupees.

aggregate turnover means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess.


In the above example aggregate turnover is turnover of M/s PQR because all unit of M/s PQR are against same PAN. In accordance with above provisions aggregate turnover is = Rs. 54 lakh +Rs. 50 lakh = Rs. 104 lakh. Individual turnover of each unit is not relevant for the purpose of registration.


(b)               As per Section 25(5) of CGST/SGST Act, where an establishment of a person who has obtained or is required to obtain registration in a State, then any of his other establishments in another State shall be treated as establishments of distinct persons for the purposes of this Act.


In view of above provision, branches in Bangalore, Delhi and Pune are distinct persons for the purpose of this Act.


Schedule I specifies that Supply of goods or services between related persons, or distinct persons as specified in section 25 in course or for furtherance of business are deemed as supply even made without consideration.


Thus, transfer of goods from Bangalore branch to Delhi branch chargeable to GST even made without consideration.