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 ?

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.