Shipping from various locations

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This query is : Resolved

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This discussion clarifies GST implications for online businesses that ship directly from suppliers to customers across different states. It explains that IGST should be charged when the buyer and seller are in different states. The 'Bill to Ship to' model is highlighted as a solution, allowing businesses to register in one state (e.g., UP) while goods are shipped from another (e.g., Punjab), with the supplier issuing an invoice reflecting the buyer's location and charging IGST.

Himanshu Agarwal

Himanshu Agarwal (Querist)

16 September 2020 If a person doing business online and send good through various supplier directly to consumer.
Ex Mr A of UP sells good to Mr B of Punjab and goods are dispatched from supplier to customer directly from Punjab seller.
We need to charge IGST OR CGST
Further can we do so that registration is in UP and we are shipping goods from various state

Udaya Chandran

Udaya Chandran (Expert)

16 September 2020 In this case, GST should be charged as per the state in which the actual buyer is located. In your example, since A & B are situated in different states, IGST should be charged. You can supply goods to any other state and charge IGST.

Lekhraj sood

Lekhraj sood (Expert)

16 September 2020 Yes,definitely you can do so under Bill to and ship to model.
Your supplier in Punjab will raise tax invoice as "Bill to A" in UP and "ship to B" in Punjab. He will charge IGST because A is situated in UP.In turn A will raise the tax invoice to B in Punjab and charge IGST.

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