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Section 25(4) — establishments of a registered person in different States or with separate registrations are treated as:
ASame entity (no GST between branches)
BDistinct persons — supplies between them are taxable
CRelated parties only for valuation
DComposite supply units
Answer & Solution
Correct answer: B. Distinct persons — supplies between them are taxable
1. Sec 25(4) — a person with multiple registrations (different States or separate within a State) is treated as DISTINCT PERSONS for the Act.
2. Cross-supplies between distinct persons are deemed supplies (Sched I para 2) even without consideration, when in furtherance of business.
3. Value is determined under Rule 28 (deemed OMV via invoice if recipient eligible for full ITC).
_Source: ICAI BoS CA Final Paper 8, Ch 7 "Registration", §Sec 25(4)_
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