TAX APPICABIITY

[Hasmukh Patel]

Dear Sir,

We here HO at Maharashtra ordered a party in Maharashtra to send goods to Gujarat. The supplier of Maharashtra billing to our Maharashtra HO and supply goods to Gujarat under payments of IGST payments. Is it correct ?

Actually billing is in Maharashtra so CGST + SGST is applicable ?

[Ganeshan Kalyani]

The billing should be with CGST + SGST.

[KASTURI SETHI]

I support the views of Sh.Ganeshan Kalyani Ji. The place of supply is Maharashtra. Covered under Section 10 (1)(b) of  IGST Act

SECTION 10. Place of supply of goods other than supply of goods imported into, or exported from India. - (1) The place of supply of goods, other than supply of goods imported into, or exported from India, shall be as under, -

(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;

[DR.MARIAPPAN GOVINDARAJAN]

CGST and SGST are applicable.

AI Summary

Place of supply rule dictates CGST and SGST apply when goods are supplied on a third party's direction to its principal place of business.
Where goods are delivered by the supplier to a recipient or any other person on the direction of a third person before or during movement, it is deemed that the third person has received the goods and the place of supply is the principal place of business of that third person, making CGST and SGST chargeable when billing is to the principal place of business in Maharashtra.