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

[KASTURI SETHI]

IGST is applicable. Place of supply is outside the State. Your buyer is your customer and not your buyer's buyer (third party). So it will be treated as inter-State supply.

[Rajagopalan Ranganathan]

Sir,

According to Section 10 (1) (a) of IGST Act, 2017-

The place of supply of goods, other than supply of goods imported into, or exported from India, shall be as under, -

(a) where the supply involves movement of goods, whether by the supplier or the recipient or by any other person, the place of supply of such goods shall be the location of the goods at the time at which the movement of goods terminates for delivery to the recipient.

According to Section 10 (1) (b) the place of supply of goods, other than supply of goods imported into, or exported from India, shall be as under, -

"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."

In your case since the principal place of business of the buyer is outside the State, though delivery of goods is within the State, it will be treated as inter-state supply and liable to IGST.

[CAHemanth Kumar]

As per IGST Act

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

(a) where the supply involves movement of goods, whether by the supplier or the recipient or by any other person, the place of supply of such goods shall be the location of the goods at the time at which the movement of goods terminates for delivery to the recipient;

(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;

Thereby, since the goods are deemed to be delieverd to other state, IGST would apply.

[subramanian vijayakumar]

I agree with the experts view it is IGST TO BE PAID

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.