Rishabh Enterprises has a restaurant registered in Maharashtra and an unregistered liquor shop in Uttarakhand. Transfer of goods from restaurant…

CA Intermediate · Taxation · MTP · September 2026
Rishabh Enterprises has a restaurant registered in Maharashtra and an unregistered liquor shop in Uttarakhand. Transfer of goods from restaurant registered in Maharashtra to liquor shop in Uttarakhand without consideration __________. Choose most appropriate option.
(A) (a) is not a supply since the liquor shop is unregistered.
(B) (b) qualifies as supply under Para 2 of Schedule I of the CGST Act, 2017 as restaurant and liquor shop are establishments of distinct persons.
(C) (c) qualifies as supply only if consideration is charged by restaurant from the liquor shop.
(D) (d) qualifies as supply since it is in course of business.

Suggested Answer and Working Notes:

Correct Answer: Option (B)

(b) qualifies as supply under Para 2 of Schedule I of the CGST Act, 2017 as restaurant and liquor shop are establishments of distinct persons.

Topics: Paper 3B: Goods and Services Tax

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