To Whom the Invoice Should be Raise

[Disha]

Q1.   I Have to Raise Professional Invoice to the Firm for my Services which I have rendered but Firm has its 

a) Head office in Maharashtra from where Books of Accounts is maintained, Audit is conducted and all the administrative work & decision are taken. No Sales and Purchase Transaction in Maharashtra GSTIN.

b) Firm have ISD No. in Maharashtra state.

c) The firm have Factory in the state Gujarat from where all the Sales & Purchase Transactions are done.

Kindly advice whether Invoice for CA Monthly Retainership Consultancy & Tax Audit should be raised to:

1) Head office (Maharashtra) and charge CGST and SGST,

(2) Factory (Gujarat) and charge IGST,

(3) ISD and charge CGST and SGST.

Please quote the Section for our better understanding. 

Q2. How to distribute ITC of ISD in case of one operational Branch?

AI Summary

GST invoicing clarified for retainership services under Section 12(2)(a) IGST and Rule 39 CGST distribution A tax professional sought guidance on where to raise invoices for monthly retainership and tax audit services for a firm with its head office and ISD registration in Maharashtra and a factory in Gujarat where sales and purchases occur. The primary view is that invoices should be raised on the Maharashtra head office, treating it as the recipient's location and place of supply under Section 12(2)(a) of the IGST Act, and charging CGST and SGST. For ISD credit, where only the Gujarat unit has taxable turnover, 100% of input tax credit should be distributed to the Gujarat GSTIN in accordance with Rule 39 of the CGST Rules.