Taxing stock transfers in GST will impact it adversely ?

Taxing stock transfers has the sole purpose of ensuring that the ITC moves with the supply of goods to where it is ultimately consumed. This is done to ensure that taxes are paid to the state where the supply is consumed. The stock transfers would be taxed but the ITC wouldn't flow to the other state with the supply. Traders will then not be able use the credit in another state. Taxing stock transfers is in the best interest of traders, and it generates no revenue for the trader.