Sale of Goods while in transit

Save Share

This query is : Resolved

Quick Summary

When a dealer in Maharashtra buys goods from Uttarakhand and sells them to Uttar Pradesh while they are still in transit, IGST applies. The 'Bill to Ship To' model is the recommended mechanism for this type of transaction. While an e-way bill cannot be amended to change the 'ship to' location, the original seller can cancel and re-issue invoices and waybills to reflect the final destination in Uttar Pradesh.

Caanchal Rastogi

Caanchal Rastogi (Querist)

04 May 2020 a dealer of maharashtra purchase goods from a dealer of Uttrakhand and sell the same while it in transit to a dealer of uttar pradesh. what mechanism he should follow?

RAJA P M

RAJA P M (Expert)

04 May 2020 If the question is charging GST then IGST applicable.

CA Altamush Zafar

CA Altamush Zafar (Expert)

04 May 2020 For tax payment IGST should be charged.
For E-way bill you can use bill to dispatch from (Combination of 2& 3 in ewaybill portal)

RAJA P M

RAJA P M (Expert)

04 May 2020 Yes... For e-way bill it will be as "BILL TO SHIP TO".

PAWAN KUMAR

PAWAN KUMAR (Expert)

05 May 2020 Bill to ship to model can be used. There is no provision in gst act regarding transit sale except this.

Caanchal Rastogi

Caanchal Rastogi (Querist)

05 May 2020 in first sale purchaser ask seller to send goods to maharashtra because that time neither further sale nor order is in existence. he get order for further sale when goods in transit and is not reached to maharashtra. Now he want to divert same vehicle. My question is "can he amend e way bill?"

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

09 May 2020 The GST E- Way bill once generated can only be amended with New Transporters and Vehicle Details. No data pertaining to ship to place can be changed.

You can ask the seller to cancel previous Invoices and Way Bills against the same and prepare Revised Invoice with Bill to Ship To model to Uttar Pradesh. Give all the details as soft copies to Driver along with your own Invoice raised to Uttar Pradesh. The materials can also be delivered as per Bill To Ship To Invoice but it is better to have invoiced raised by Maharashtra to Uttar Pradesh.

Instruct the courier person to provide the bill raised by Maharashtra to Uttar Pradesh upon delivery of materials & keep the Bill to & ship to invoice and way bill for GST Checking and compliance only.

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