Point of Sale

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This discussion clarifies the Goods and Services Tax (GST) implications for selling assets that remain at the buyer's location, with only the title transferring. The Place of Supply is determined to be where the goods are located at the time of sale. Consequently, if the assets are in Karnataka and the sale occurs there, CGST and SGST would apply. An e-way bill is generally not required for such transactions as there is no physical movement of goods.

Jeeth Kochar

Jeeth Kochar (Querist)

25 January 2022 Dear Experts, Need your opinion on Point Of Sale in GST. My client M/s. X Pvt Ltd who is renting Laptops and computers based in Karnataka. 60% of his client base is in Karnataka and 40% in rest of India.
ITC benefit availed for all its assets purchased since 2019. All assets were at clients location and monthly invoices were raised and received the revenue. Now M/s. X wants to sell its 50% of assets to M/s Y Pvt ltd in Tamilnadu. After sales the billing will be raised by M/s Y to those clients who are holding the assets at the time of sale.

There will not be any movement of asset, only tittle transfer will take place. All assets will continue to be in their respective places.

Now my query is :
1. What will be the Place of supply for selling the assets lying and continue to be in Karnataka?

2. Whether IGST or SGST to be charged for the tittle transfer of assets from a assessee in Karnataka to a assessee in TN.

3. As there is only tittle transfer and no movement of goods is e-way bill be necessary to generate ?

Thanks in advance!!

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

27 January 2022 1 Place of supply is Karnataka.
2 IGST applicable.
3 E way bill not required.

CA Altamush Zafar

CA Altamush Zafar (Expert)

27 January 2022 Where good lying in Karnataka are sold without movement then POS will be Karnataka.
Since the seller is in Karnataka and POS is also in Karnataka CGST and SGST will be charged.
Eway bill is not required since there is no movement of goods.

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