diff --git a/erpnext/regional/india/utils.py b/erpnext/regional/india/utils.py
index e4b14d62811..45f924694c6 100644
--- a/erpnext/regional/india/utils.py
+++ b/erpnext/regional/india/utils.py
@@ -248,6 +248,9 @@ def is_internal_transfer(party_details, doctype):
 	elif doctype in ("Purchase Invoice", "Purchase Order", "Purchase Receipt"):
 		destination_gstin = party_details.supplier_gstin
 
+	if not destination_gstin or party_details.gstin:
+		return False
+
 	if party_details.gstin == destination_gstin:
 		return True
 	else: