Question 33:

 My client have two locations one is Godown and other is factory in same State.. Goods being transported from Godown to factory on daily basis for value exceding Rs.50000.00 for which EWB is mandatory While issuing EWB SGST and CGST is mandatory to be filled whereas it is not a sale. How SGST and CGST can be claimed as ITC in the Same GSTR.? Alternatively is it possible to issue EWB without Tax.

Answer

As the godown and factory are in same state then if both places have same GSTIN, inter unit transfer will be on challan. As per Rule 55 you are required to mention tax rate and tax amount on delivery challan but it will not create liability to pay tax because transfer under cover of challan will not be considered as supply and not shown in GSTR-3B. So there is no question of ITC.

So far as EWB is concerned, the same shall be generated on the basis of challan. (reply dt. 5/28/2018)