26 October 2016
my client is dealing in orthopedic instruments & implants i.e. supplied to hospitals having office in Ludhiana & paying VAT on it . Now he want to establish virtual office in Gujarat . please guide me is it possible that billing is done from Ludhiana goods are received at Ludhiana office but billed at Gujarat office for tax free what are its other benefits
26 October 2016
It is a matter of time. GST is aiming at DESTINATION based tax. Right now, the principle is tax is charged by the State in which the SALE is complete. From the wording it appears that you want to complete the sale in Ludhiana, by the Gujrath Office. Please also note, for inter State transactions, CST is applicable, if not VAT