GST invoicing

[Chandana Devalla]

Dear Members

We are a firm undertaking trade in specialised steel. We are registered under GST in Hyderabad, Telangana as our registered office is located here. We do not have any offices any where else. Now, we got an order for supply of our produts in Chennai, the goods are also located in Chennai, so the supply of goods will be from Chennai to the buyer in Chennai, however, the invoicing will be done from Hyderabad. We don't have GST registration in Chennai, so we can only invoice from Hyderabad.

Is this accepted under GST? Will it be an Intra-state supply or Inter-state supply? Please advice.

Thank you.

[SHIVKUMAR SHARMA]

You need not to have registration in Chennai.You may issue invoice from Hyderabad & Charged IGST in the Invoice as your Transaction is Inter state.

[Chandana Devalla]

Thank you very much, Sir.

[Alkesh Jani]

Sir,

In support of views expressed by our expert, the relevant portion of fliers are reproduced below:-

Subject to place of supply provisions, where the location of the supplier and the place of supply are in––

a) two different States;

b) two different Union territories; or

c) a State and a Union territory,

Such supplies shall be treated as a supply of goods or services in the course of inter-State trade or commerce.

Location of Supplier broadly is the registered place of business or the fixed establishment of the supplier from where the supply is made.

Place of supply provisions have been framed for goods & services keeping in mind the destination/consumption principle. In other words, place of supply is based on the place of consumption of goods or services.

In view of above, the supply shall be treated as “Inter-State” supply.

Thanks

[DR.MARIAPPAN GOVINDARAJAN]

I also endorse the views of Sri Sivakumar Sharma.

[Ganeshan Kalyani]

You need not take registration in the State of Chennai. You can raise invoice from Telangana levying IGST.

AI Summary

Place of supply rule: supplier and supply location in different states makes it an inter state supply requiring IGST.
Where a supplier's registered place of business (or fixed establishment) and the place where goods are delivered are in different States, the transaction is treated as an inter State supply under the place of supply rules; the supplier may invoice from its registered office in the other State and must charge IGST, and registration in the State of delivery is not required solely for that supply.