🇮🇳India

इंटरकंपनी स्टॉक ट्रांसफर पर 18% RCM GST

2 verified sources

Definition

Stock transfers between distinct entities under same group require GST payment on RCM, increasing working capital lockup.

Key Findings

  • Financial Impact: 18% GST on transfer value (₹2-10 lakh/year for ₹1 Cr transfers); 10-20 hours/month RCM filing
  • Frequency: Per transfer (quarterly ITC adjustment)
  • Root Cause: Manual RCM computation without integrated ERP

Why This Matters

The Pitch: Motor parts firms pay ₹2-10 lakh extra annually on RCM for stock balancing. Automation computes exact RCM liability.

Affected Stakeholders

Finance Controller, Tax Consultant

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Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

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