BUYER OTHER THAN ACTUAL USER OF MATERIAL

[SURYAKANT MITHBAVKAR]

If our buyer (Maharashtra) given instruction to send material to Gujarat customer ( Who is end user) on his behalf.

The above case we will raise invoice charging IGST (Since supply is Inter State) and stating Shipped to Gujarat & Billed to Maharashtra. Also we generate E-Way Bill to Gujarat Customer showing IGST.

In our case the sale is in transit because we will get payment from Maharashtra buyer and he is asking to raise invoice after charging (CGST + SGST) .

Is it possible to raise invoice showing Intra State supply when we declared as Inter state supply?

Can we enter buyer details in GSTR1 to avail credit to buyer ?

We have raise supply invoice charging IGST is it possible to show IGST amount under Intra state dealer in GSTR1?

or

What is procedure to adopt under the above transaction?

[YAGAY andSUN]

We understand it is bill to ship transaction. Depending of the location of your bill to customer the nature of levy under GST laws would be determined, if with state then CGST+SGST otherwise IGST would be applicable.

[SHIVKUMAR SHARMA]

In this Transaction you have to charge CGST & SGST as the Supplier & Buyer both are from same state & E Way bill have to be issued in the name of buyer & delivery address of Customer at Other state.

[Alkesh Jani]

Sir, in this regards, my point of view is that, the place of supply can be determined by referring Section 10 of IGST Act, 2017. The sub-clause (a) & (b) of the said section is given below:-

(a) where the supply involves movement of goods, whether by the supplier or the recipient or by any other person, the place of supply of such goods shall be the location of the goods at the time at which the movement of goods terminates for delivery to the recipient;

(b) where the goods are delivered by the supplier to a recipient or any other person on the direction of a third person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to the goods or otherwise, it shall be deemed that the said third person has received the goods and the place of supply of such goods shall be the principal place of business of such person;

From above, it is clear that place of supply in your case is Maharashtra and CGST +SGST is applicable. You buyer has rightly asked for CGST+SGST.

Our experts may correct me if mistaken.

[KASTURI SETHI]

No doubt about applicability of CGST and SGST.

AI Summary

GST Query Clarifies 'Bill to Ship' Transactions: Charge CGST and SGST When Goods Delivered to Buyer's State A discussion on a GST-related query involves a transaction where a buyer in Maharashtra instructs the seller to ship materials to an end-user in Gujarat. The seller questions whether to charge IGST, as it is an inter-state supply, or CGST and SGST, since the buyer is in the same state. Responses clarify that in a 'bill to ship' transaction, the place of supply is determined by the location where the goods are delivered, which is Maharashtra. Therefore, CGST and SGST should be charged, aligning with the buyer's request. The consensus is that CGST and SGST are applicable.