However, if the same company sell goods to customers on approval basis outside its home state, then the company gets a six-month window to pay IGST.
Surendra Mehta, secretary, the Indian Bullion and Jewellers Association (IBJA) says, “This provision will lead to branch closures and encourage the mushrooming of shell companies at branch locations, to defer GST payment.”
The difference in the tax implications on transfer to branches outside the home state and sale outside state on approval bases could cause compliance issues.
Rahul Mehta, Chairman, Indian Clothing Manufacturers Association said, “Indian evil genius usually prevails over government policies and regulations. However, under GST, a single trail found in a chain will be noticed and hence, it will not be easy to skip tax sleuths’ eyes.”
source : http://www.business-standard.com/article/economy-policy/deficiency-in-gst-law-may-form-more-shell-companies-branch-closures-117051600363_1.html