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Confusion of Place of Supply

IGST 205 views 2 replies

ajaz ul haque

partner

118 Points Joined May 2018

"Good morning everyone, I hope you all are doing well."

Scene 1 Ek UP ka Registred Person (A) hai , Usne Haryana ke Registred Person se taxable Goods Purchases Kiya aur Incoterm ( Ex Work) par, Haryana ke supplier ne IGST apply Kiya,

Secne 2 Ab UP ke Above Person (A) ne Same Place Par (Haryana) hi Bina Goods ko Movment kiye 2nd UP ke Registerd Person (B) ko Sale Kar Diya Aur Incoterm bhi same rahi (EX WORKS).

Q.1 Ab E way Bill Generate karne Ki Liabilitiy kiski hai? Supplier or Buyer?

Q. 2 Jab Person (A) Person (B) ko Invoice Dega to Kaunsa GST Head Apply karega? IGST or CGST SGST

Scene 3 Person(B) ne wahi goods Haryan ke same place se hi apne Buyer joki Punjab me regiterd person hai uske liye movment kara diya, ab ye person(B) Bill to Ship to ki Tanjection ko select karke eway bill generate karega aur IGST Charge Karega,

Confusion : Secne 2 ki Trenjection me hai , ki Person(A) Person(B) se IGS, ya CGST SGST lega? Aur Uske Buer Person(B) ko koi ITC ka Risk To Nahi?

"I hope you all can understand my concern and help me find a way out."

Thnaks

Replies (2)

Rama chary Rachakonda

Master in Accounts & high court Advocate

8748 Points Joined December 2011

Scenario Analysis Let's break down the scenarios and address your questions:

Scenario 1: Purchase from Haryana Supplier - *IGST Applicability*: Since the goods are being transported from Haryana to UP, IGST is applicable. -

*E-way Bill Generation*: The supplier (Haryana registered person) is responsible for generating the e-way bill, as the movement of goods is initiated by the supplier.

Scenario 2: Sale from UP Person (A) to UP Person (B) without Movement -

*GST Applicability*: Since both parties are registered in UP and the goods are not moving, this is an intra-state supply.

Therefore, CGST and SGST would be applicable. -

*E-way Bill Generation*: In this case, since there is no movement of goods, an e-way bill is not required. Scenario 3: Sale from UP Person (B) to Punjab Buyer

- *GST Applicability*: Since the goods are being transported from UP to Punjab, IGST is applicable. -

*E-way Bill Generation*: Person (B) would need to generate an e-way bill for the movement of goods to Punjab.

They would select the "Bill To - Ship To" transaction type and charge IGST. Key Takeaways -

*Scenario 2 GST Head*: Person (A) would charge CGST and SGST to Person (B), as it's an intra-state supply. -

*ITC Risk for Person (B)*: Person (B) would be eligible for ITC on the CGST and SGST charged by Person (A), provided they have a valid invoice and have paid the GST amount.

By understanding the GST implications and e-way bill requirements for each scenario, you can ensure compliance with GST regulations and avoid any potential issues.

Rama chary Rachakonda

Master in Accounts & high court Advocate

8748 Points Joined December 2011

Scenario Analysis Let's break down the scenarios and address your questions:

Scenario 1: Purchase from Haryana Supplier - *IGST Applicability*: Since the goods are being transported from Haryana to UP, IGST is applicable. -

*E-way Bill Generation*: The supplier (Haryana registered person) is responsible for generating the e-way bill, as the movement of goods is initiated by the supplier.

Scenario 2: Sale from UP Person (A) to UP Person (B) without Movement -

*GST Applicability*: Since both parties are registered in UP and the goods are not moving, this is an intra-state supply.

Therefore, CGST and SGST would be applicable. -

*E-way Bill Generation*: In this case, since there is no movement of goods, an e-way bill is not required. Scenario 3: Sale from UP Person (B) to Punjab Buyer

- *GST Applicability*: Since the goods are being transported from UP to Punjab, IGST is applicable. -

*E-way Bill Generation*: Person (B) would need to generate an e-way bill for the movement of goods to Punjab.

They would select the "Bill To - Ship To" transaction type and charge IGST. Key Takeaways -

*Scenario 2 GST Head*: Person (A) would charge CGST and SGST to Person (B), as it's an intra-state supply. -

*ITC Risk for Person (B)*: Person (B) would be eligible for ITC on the CGST and SGST charged by Person (A), provided they have a valid invoice and have paid the GST amount.

By understanding the GST implications and e-way bill requirements for each scenario, you can ensure compliance with GST regulations and avoid any potential issues.

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