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A steel dealer in Salem, Tamil Nadu, is facing high margins from wholesalers when buying products manufactured in Karnataka. To circumvent this, they plan to register a separate GST entity in Karnataka under the same name. The dealer is seeking clarification on how to invoice goods from their Karnataka entity to their Tamil Nadu entity, especially since direct supply from the manufacturer to other states is not an option. The advice given is to treat each registration as a separate legal person and raise an invoice from Karnataka to Tamil Nadu using IGST for the inter-state sale.

sankar ponnan

sankar ponnan (Querist)

13 February 2021 SIR- I am a steel dealer in Salem, Tamil Nadu and I am buying the product from the local manufacturers. But, a product which has manufactured in Karnataka has a big market in Tamil Nadu. If I try to get it from the Wholesellers / Distributors, they are charging too much of margin. Hence, to avoid these problems, I have decided to take a new registration in the same name under GST in Karnataka. I would like to buy the product from manufacturer and bring it to Salem. In this case, to bring the material from there, how to invoice as both of shops are in my own name ?

Plz clear my doubts
thanks in adv

CA Altamush Zafar

CA Altamush Zafar (Expert)

13 February 2021 you have to take separate registration in Karnataka. an invoice will have to be raised from Karnataka registration to Tamil nadu

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

15 February 2021 You can directly buy from Karnataka through IGST inter state sale.

sankar ponnan

sankar ponnan (Querist)

15 February 2021 SIR - That Brand Manufacturer will not supply their materials directly to other state. They are supplying only to their distributors. that is why i have to buy the material at the local registration. If i do so, what will be the GST procedures between my own shops?

CA Altamush Zafar

CA Altamush Zafar (Expert)

15 February 2021 Each of your own registrations will be treated as different persons. You will have to raise invoice from Karnataka on Tamil nadu

sankar ponnan

sankar ponnan (Querist)

15 February 2021 Ok Sir thank u very much

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