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Supply

12 August 2017

i hv registered in Maharashtra. i have sale goods to register dealar in andhra pradesh. but goods supplies in Maharashtra. so my query is i have charge igst or sgst/cgst?

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28 Replies

Onkar (Self Employed) (111 Points)
Replied 12 August 2017

You have to charge IGST as your dear is registered outside maharashtra though you goods supplied in maharashtra

CA Altamush Zafar (GST Consultant) (15907 Points)
Replied 13 August 2017

Cgst and sgst will be charged.

CA Akhilesh Kumar Kandpal (Proprietor A K Kandpal & Associates) (1442 Points)
Replied 13 August 2017

agreed with onkar.....charge igst.....

RAJA P M ("Do the Right Thing...!!!") (127072 Points)
Replied 13 August 2017

Want more clarification from CA Altamush Zafar Sir and CA Akhilesh Kumar Kandpal.......!

natarajan (SM - Audit & Taxation) (156 Points)
Replied 13 August 2017

Dear team,

this is one of such scenario under bill to and ship to.

under this scenario under whose instrctions the movement of goods taking place is important. here Andhra Pradesh dealer, hence IGST Will be charged

hope it is clear

natarajan

Quresh Taiyebi (49 Points)
Replied 13 August 2017

@ natarajan, sir, if 'bill to' and 'ship to' (with state codes) are there to determine the c/Gst or igst, then why an additional field of 'place of supply' appears on invoice?

1 Like

Aalam Sheikh (CSR) (72 Points)
Replied 13 August 2017

If place of supply is in Maharashtra.. CGST and SGST will be charged. Irrelevant that receiver

Aalam Sheikh (CSR) (72 Points)
Replied 13 August 2017

Is in Andra pradesh. If supplier has arranged transportation of goods then place of termination will be considered as place of supply and hence IGST will be Charged.

CA Akhilesh Kumar Kandpal (Proprietor A K Kandpal & Associates) (1442 Points)
Replied 13 August 2017

in this case there are two supply-
1. first is maharashtra dealer to andhra dealer. it does not matter where the goods are supplied. whether in maharashtra or dubai or mars....the place of supply will always be andhra pradesh....and igst will be charged......
2. second supply is between andhra dealer and the person in maharashtra to whom goods are delivered by the narashreshth dealer......in this case place of supply will be maharashtra......igst will be charged here too by andhra dealer.

1 Like

Aalam Sheikh (CSR) (72 Points)
Replied 13 August 2017

If receiver has made arrangements for transportation then place of supply will be Maharashtra as termination of place of supply will be factory gate located in Maharashtra.

CA Akhilesh Kumar Kandpal (Proprietor A K Kandpal & Associates) (1442 Points)
Replied 13 August 2017

in first supply sec 10(1)(b) of igst act and in second supply section 10(1)(a) of igst act will apply.......

I politely disagree with mr alam.....who arrange transport does not matters in these case to decide place of supply.

NITIN KOTAK (SERVICE) (1465 Points)
Replied 13 August 2017

I8. Intra-State supply.

[1] Subject to the provisions of section 10, supply of goods where the location of the supplier and the place of supply of goods are in the same State or same Union territory shall be treated as intra-State supply: Provided that the following supply of goods shall not be treated as intra-State supply, namely:-

[i] supply of goods to or by a Special Economic Zone developer or a Special Economic Zone unit;

[ii] goods imported into the territory of India till they cross the customs frontiers of India; or

[iii] supplies made to a tourist referred to in section 15.

[2] Subject to the provisions of section 12, supply of services where the location of the supplier and the place of supply of services are in the same State or same Union territory shall be treated as intra-State supply: Provided that the intra-State supply of services shall not include supply of services to or by a Special Economic Zone developer or a Special Economic Zone unit.

Explanation 1.-For the purposes of this Act, where a person has,-

[i] an establishment in India and any other establishment outside India;

[ii] an establishment in a State or Union territory and any other establishment outside that State or Union territory; or

[iii] an establishment in a State or Union territory and any other establishment being a business vertical registered within that State or Union territory, then such establishments shall be treated as establishments of distinct persons.

Explanation 2.-A person carrying on a business through a branch or an agency or a representational office in any territory shall be treated as having an establishment in that territory.

NITIN KOTAK (SERVICE) (1465 Points)
Replied 13 August 2017

When sold to party business establishments or registration not in other state, then place of supply deem to be the place of sold to party registration state, so in this case IGST applicable