Yes it would be taxable but you can book credit on that. Reason : the word used in GST is \”SUPPLIES\” and not \”SALES\” . thus supplies include branch/stock transfer also. If the stock transfer is within the state then GST would not apply only if you have opted SINGLE REGISTRATION for all of your premises within the state. In such case, mere Bill Of Supplies would be sufficient. Conclusion: in your case GST is applicable.