Place of supply

Save Share

This query is : Resolved

Quick Summary

This discussion clarifies the place of supply rules for courier services. When a courier registered in Karnataka sends items outside the country or to other states, IGST should generally not be charged if both the supplier and recipient are in Karnataka. However, if the courier service itself is deemed to be supplied outside Karnataka (e.g., for international shipments), IGST is applicable. The challenge arises when accounting for these invoices, as system errors may occur if not entered correctly, particularly when the courier's GST number indicates Karnataka registration.

k.b.nagesharao

k.b.nagesharao (Querist)
Follow

14 January 2020 when we use one courier registered in Karnataka to send couriers out side the country they are charging theIGST. How to account the same as we tried to entry supply as interstate and igst it shows error in gstr-3B please advise how to enter the courier invoice.Thanks in advance,
K.B.Nagesha rao
9448826793

CA Anita Bhadra

CA Anita Bhadra (Expert)
Follow

14 January 2020 Your courier agency( Registered in Karnataka ) providing services to you (recipient also in Karnataka ) IGST should not be charged.

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

15 January 2020 IGST is to be accounted for as IGST, since place of supply is out of Karnataka. (Why do call it as out of country....do you mean out of country OR out of Karnataka?)

Message likes : 1 times

k.b.nagesharao

k.b.nagesharao (Querist)
Follow

15 January 2020 Dear Amol S.joglekar sir,
Yes we are sending samples to other states and out of country too. But while entering the inv it is not accepting igst as the courier agencies GST NO starts with 29 mean karnataka.

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

16 January 2020 As CA Anita Bhadra has rightly pointed out, since your courier agency is also in Karnataka, there arises no question of charging IGST. Same holds good even for export.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now