Bill To Ship To

[Kaustubh Karandikar]

Case – 1: Seller (A) - Maharashtra, Buyer of Goods (B) - Outside India, goods to be delivered (C) – Maharashtra, Payment received in USD from A to B. In such case, i) how to bill to customer, ii) CGST + SGST or IGST?

Case – 2: Seller (A) - Dubai, Buyer of Goods (B) – Maharashtra, goods to be delivered (C) – China Payment received in foreign currency. In such case, i) how to bill to customer, ii) Applicability of GST?

[Shilpi Jain]

Case 1: A view can be taken that section 10(1)(b) is not applicable as there is no principal place of business of B. So 10(1)(a)IGST Act would apply. Either way it would be CGST + SGST

Case 2: This is not import of goods nor service. No GST liability on B or A.

For transaction between B and C also no GST liability as per schedule III - S. No. 7.

[Kaustubh Karandikar]

Thanks Shilpi ji. Following is my view on the same:

Section 7(5)(a) will get attracted in this situation and accordingly, Seller – A need to charge IGST in the Tax Invoice.

Your kind views please

[Shilpi Jain]

It is covered under schedule iii then there is no liability.

[Samir Kapadia]

@Shilpi:

IGST ActSection 10(1)(b) merely states principal place of business. There is no further qualification that the principal place of business should be in India and not outside India

CGST Act definition of principal place of business merely states that place of business for which certificate of registration is granted. Again there is no qualification in India

CGST Act provides for registration of Non resident taxable person, in this case clearly such person has no place of business or residence in India.

Undoubtedly, in case 1 the goods are neither physically exported or imported into India. therefore Section 10 of IGST Act can be said to be applicable to case 1.

If a harmonious reading is to be adopted then even case 1 can be covered under 10(1)(b) - subject to the non resident taxable person obtaining registration under GST.

Can this argument be countered?

AI Summary

IGST applicability disputed where goods sold by an Indian seller to a foreign buyer with delivery in India.
Whether IGST applies when an Indian seller supplies goods to a foreign buyer with delivery in India is contested. One view requires IGST based on place of supply and non resident registration, while another relies on Schedule III exclusions or treats the supply as attracting CGST and SGST depending on the principal place of business and registration status. The debate turns on whether place of supply, principal place of business rules, or Schedule III controls tax incidence.