Revenue neutral transaction for the state.

[DKRajarshiandCo CharteredAccountants]

The company has charge IGST on customer in Gujrat state from invoice raised from Maharashtra state. The company is having registration in Gujrat state but not raising any invoices from Gujrat state for internal controls. As the customer is in Gujrat state the 50% of IGST goes to Gujrat state and 50% goes to central Government. Can Gujrat sate raised any objection under GST as for Gujrat state transaction is revenue neutral.

AI Summary

Query on IGST Charging from Maharashtra for Gujarat Customer Raises Concerns on Compliance with CGST Act Procedures A chartered accountancy firm raised a query about a company charging IGST on a customer in Gujarat from an invoice issued in Maharashtra. The company is registered in Gujarat but does not issue invoices from there for internal controls. The discussion focused on whether Gujarat could object, given the transaction is revenue neutral for the state. Respondents agreed that no objection should arise if the entities are registered separately in both states and procedures under the CGST Act are followed. It was noted that if the supply originates from Gujarat but billing occurs in Maharashtra, it may be incorrect.