Bill to & ship to transactions?

19 March 2019

Our Company has GSTN in different states, usually what we do we purchase goods in Bill to Delhi GSTN and ship to different GSTNs.

As per GST provision we can do such transaction but I think Delhi GST department can raise the query that the Goods are being used in different states and ITC are being utilised in Delhi GSTN, hence revenue of Delhi is lost.

Sir, please comment on the above.

19 March 2019
Sir, in my humble opinion Invoice of outward supply of goods should be issued to the respective GSTN by Delhi branch.
Thanks and regards
CA Shubham Sharma

CA Saloni (Expert)
23 March 2019
There is a provision in IGST Act, which states that the party of "Bill to" has to raise invoice to "Ship to " party to pass on the credit to the state of consumption.

23 March 2019
In accordance with provisions of Schedule I "Activities to be treated as supply of even if made without consideration"of the CGST Act, supply also include "Supply of Goods or Services or both between distinct persons as specified in section 25", when made in course or furtherance of business. As the ship to is to various distinct persons, there are indeed two transaction here, Hence the above provisions will come into picture.

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