Core rule: branches and warehouses operating under the same taxable person and PAN are treated as one taxpayer. A genuine internal stock movement is not, merely because goods change location, a sale to a different customer.
Before dispatch, record the transfer in the prescribed stock-transfer register, issue the prescribed challan and complete the required VCTS entry. Carry the challan and QR-coded transport manifest. Reconcile quantities sent and received; combine branch transactions in the taxpayer's VAT return.
Example: a Kathmandu warehouse sends 50 cartons to its Pokhara branch under the same PAN. Document an internal transfer, not a fictitious customer sale or a fresh input-VAT claim.
A separately incorporated group company is not simply another branch. Supplies between separate taxpayers require their own VAT analysis.