IGST Implication for transportation purpose

[Shambhavi Nayak]

The buyer is an Builder at Bellary and have Karnataka Registration

He needs the material to be delivered at Kerala site where he doesnt have Kerala Registration.

We can issue e Invoice Bill to ship to basis but it shows

CGST SGST

In Kerala state is it necessary to give IGST Invoice or bill to ship to option is accepted.

[Sadanand Bulbule]

As per Section 10(1)(b) of the IGST Act read with Section 8(1), where the "Bill To" and supplier are in Karnataka, the place of supply is deemed to be Karnataka and the transaction qualifies as intra-State supply, hence charging CGST and SGST under a Bill To-Ship To model is legally correct even if goods are delivered to Kerala

[Pinnacle Tax Advisor]

Where goods are delivered to a third party on the direction of the buyer, the buyer's location shall be considered the place of supply (POS). Accordingly, if you are registered in Karnataka and issue the invoice to the buyer on their GSTIN registered in karnataka, CGST and SGST will be applicable-even if the goods are physically delivered in Kerala.

AI Summary

Place of supply governs GST treatment: bill to location can render supply intra state, requiring CGST and SGST. When the invoice ('bill to') and the supplier are located in Karnataka, the place of supply is deemed to be Karnataka and the transaction is an intra State supply subject to CGST and SGST, even if goods are physically delivered in Kerala; similarly, where delivery to a third party occurs at the buyer's direction, the buyer's registered location determines the place of supply.