Bill to outside the State Party but deliverybut delivery to local dealer

[SURESH CHOPRA]

Our Supply invoice is to the Party out side the State . But delivery is to a Dealer within the State on the direction of the Customer/ dealer.

Under the earlier Sales Tax Act and VAT Act such transaction was treated as a local sales only since the destination of the Goods terminates in the Same STATE .

What is the position under the GST Act . Whether we have to charge IGST or CGST +SGST

The Software registers the TAX under CGST +SGST only .

More over who shall issue the 2A Form ? Whether the Party on whom the Invoice is raised( Outside the State Party ) or the Party who has received the Goods ?

Early clarification please

Suresh Kumar Chopra

AI Summary

IGST Applies to Goods Billed Out-of-State but Delivered Locally Under GST Act, Says Experts on Inter-State Supply. A query was raised regarding the applicable tax under the GST Act when goods are billed to a party outside the state but delivered within the state to a local dealer. Under the previous Sales Tax and VAT Acts, such transactions were considered local sales. However, under the GST Act, experts clarified that IGST applies because the place of supply is deemed to be the principal place of business of the third party directing the delivery, which is outside the state. Therefore, it is treated as an inter-state supply, and IGST should be charged.