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GST – Rajasthan AAR - Setting up of new unit, Distinct Person, Obligation to register, issuance of E-way Bill, eligibility to avail input tax credit for discharging GST liability from either of the units - applicant intends to establish a new unit within the which would be manufacturing similar goods as they are manufacturing in their present registered premises – whether the applicant is required to take separate registration of its new unit – whether Inter-unit movement of raw material, semi-finished, finished, capital goods would fall under “supply of goods” - HELD – Assessee needs to take registration in every state from wherever it is engaged in making taxable supply of goods or services or both. Where a person has multiple branches in a State, in such a case he shall be liable to take single registration in the state by adding branches as additional place of business - as per Sub-Section (2) of Section 25 of the CGST Act, 2017, the applicant does not require to obtain separate registration of their new unit and can work with single registration allotted to present unit. As present unit and new unit will have same registration, therefore they are not distinct person as per Section 25(4) of the CGST Act, 2017 - As far as supply of goods or services or both between these two establishments of applicant is concerned, movement of raw material, semi-finished, finished, capital goods between the two units under same GST registration number shall not be a ‘supply’ under the provisions of the CGST Act - as there is total absence of recipient of the goods other than itself such movement would not fall under “supply of goods” - On the other hand, if the receiving unit or processing unit operates with a different GSTIN, then Central Tax and State Tax are applicable. Therefore, in the present case no liability of GST would arise for such of raw material, semi-finished, finished, capital goods between two units within the state and working under same GSTIN - Consideration of value for E-way bills if that is to be issued for transfer of goods from one unit to other – HELD - applicant is not exempted to generate e-way bill for the movement of capital goods, raw material or finished goods to be made between their two units - Further, as far as value for E-way bills if that is to be issued for transfer of goods from one unit to other is concerned, being not a ‘supply’, no GST would attract on such movement - for inter-unit transfer of goods applicant would have to take a value of such goods as explained in Explanation-2 to Sub-Rule (1) of the Rule 138 of the CGST Rules, 2017 and issue an E-way bill for such transfer - Whether applicant can use Input Tax Credit for the goods, raw material, capital goods received in one factory for payment of GST for the clearance made from second unit – HELD - since applicant would be having single GST No. for both the units then as per the section 16(1) there would be only one ledger for the ITC credit - applicant would be able to use the eligible credit of electronic credit ledger to discharge their GST liability for either of the unit i.e., the applicant would be able to use the eligible credit of inputs and capital goods for payment of GST for the goods cleared from other unit as there is only one electronic ledger for the credit of both the units having same GST number. Hence, applicant would be able to use this credit for discharging their GST liability from either of the units.
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