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

Place of supply determined by buyer's principal business location, so inter state tax applies when delivery is directed to a local dealer.
Where a supplier invoices a buyer whose principal place of business is outside the State but delivers goods within the State at the buyer's direction, the goods are deemed received by the directing third person and the place of supply is that third person's principal place of business; consequently the supply is an inter state supply and IGST applies.