Place of Supply - Bill to Ship to

[Kaustubh Karandikar]

XYZ, Australia, placing order on PQR Maharashtra for delivery of goods directly to ABC, Bihar.

1) Is PQR required to pay GST on this transaction?

2) If yes, IGST or CGST + SGST

3) Instead of Bihar, if goods are to be delivered to Pune and if GST is payable by PQR, whether IGST or CGST + SGST?

[Narendra Nimmala]

PQR is required to pay GST. 1st transaction IGST and 2nd transaction, CGST and SGST as per section 10(1)(a) of IGST Act. 10(1)(b) is not applicable as XYZ does not have principal place of business in India

AI Summary

Place of supply determines GST liability: IGST for inter state deliveries, CGST and SGST for intra state supply.
A supplier in Maharashtra making delivery to a consignee in Bihar must pay GST; where delivery is to a different state the transaction attracts IGST, whereas delivery within the supplier's state attracts CGST and SGST. A provision applicable to supplies involving a person with a principal place of business in India does not apply because the buyer lacks such a place of business in India.