PLACE OF SUPPLY & GST

[NILESH PITALE]

Dear Sir

We are Registered under Maharashtra , We Have Received the order From our Haryana State Customer and as per His Instruction we have Delivered The Goods within Maharashtra and Charged CGST & SGST Of Maharashtra.

Customer Is demanding IGST Bill whether they are right or wrong

Please Guide

[KASTURI SETHI]

Haryana State Customer is right. IGST is applicable. Goods stand delivered on the direction of Haryana State Customer.Place of supply is virtually Haryana.

[ABHISHEK TRIPATHI]

Dear Nilesh Sir,

Agreed to KS Sir’s view. Kind addition to that:

Bill to Ship to Model:

As per Section 10(1)(b) of the IGST Act, the place of supply will be the principal place of business of the Haryana State Customer and not the recipient’s place (Maharashtra customer). In your case, the place of supply is in Haryana State for that tax invoice is to be issued by you levying IGST.

Haryana State Customer has to raise an invoice on Maharashtra Customer. That is his concern.

[Mr Rao]

Dear querist,

I agree with both the experts. Haryana State Customer is actually a buyer for all the practical purposes. The recipient in Maharashtra is mere a consignee who will receive the goods. In view of the same, your customer demanding IGST invoice is proper.

[Ganeshan Kalyani]

I agree with the views of the experts.

[YAGAY andSUN]

In GST Laws there is no exemption on Bill to Ship to transactions. Therefore, IGST will be applicable on the interstate transactions and thereafter if such goods are sold within state then CGST and SGST will be applicable.

AI Summary

Place of supply rules determine IGST applicability where buyer directs delivery; invoice must levy IGST. Where a buyer outside the supplier's State directs delivery under a bill-to/ship-to arrangement, the place of supply is the buyer's principal place of business under Section 10(1)(b) of the IGST Act, and the supplier must issue an invoice charging IGST; the consignee in the supplier's State is only a delivery recipient and does not make the supply intra-state.