GST Applicable on Invoice

In one of the scenario, we (Company in Maharashtra) purchase some raw material from vendor of state (U.P.), the vendor has demerged one of its unit and exists with different name with same of its state (U.P.), the vendor has generated the  its sales invoice as buying party of its own demerged company by applying CGST, SGST and kept us as Consignee, we are suppose to pay to the original vendor company 

My query here is how can we update this invoice on GSTR 1, as we got the invoice containing CGST,SGST and not as IGST even though transaction is done from different state than ours. 

Replies (6)
Quick Summary
A company in Maharashtra purchased raw materials from a vendor in Uttar Pradesh. The vendor, after demerging a unit, issued an invoice from its demerged company, applying CGST and SGST instead of IGST, despite the inter-state nature of the transaction. The customer is seeking guidance on how to report this on GSTR 1, as their 2A report shows CGST/SGST for an inter-state purchase, which seems incorrect. The consensus is to request an amended invoice from the vendor.

Is it a case of bill to ship to?

In case of our vendor, it has bill to (vendor's own demerged company) and its been shipped to us ( we are vendors' customer), we are suppose to pay to vendor company. These both companies are located at U.P. and we are in Maharashtra.

Why has it billed to its own company?

Denerged company will generate bill on you, just ask for that invoice.

Do not know the Reason,it might be for their internal adjustment but it doesn't seem to be correct according to GST,as on GST portal in our 2A report it will be reflected as CGST, SGST against inter state purchase instead of IGST

Contact the company and ask to ammed invoice. CGST & SGST will be charged only if goods delivered from Maharashtra to Maharashtra

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 07 September 2026
CA Articles

Kothari Jain Patil & Chartered Accountants

Pune

CA Inter

View Details
Company
ARTICLESHIP 24 August 2026
Article Assistant

M/s.S.G.Salecha & Co.

Mumbai

CA Inter

View Details
Company
19 September 2026
Finance Manager

Mugdha Art Studio

Hyderabad

CA

View Details
Company
18 September 2026
Accounts & Finance Specialist

ULTRA CHEMICAL WORKS

Thane

CA Final

View Details
Company
Featured 11 September 2026
Audit Executive

RBSM Corporate Advisors Private Limited

Pune

CA

View Details
Company
ARTICLESHIP 29 August 2026
Article Assistant

RRPM & ASSOCIATES LLP

Chennai

CA Inter

View Details
Company
ARTICLESHIP 16 September 2026
CA Article Trainee

SR BAGAI & Co.

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 18 September 2026
Industrial Trainee

Twenty Point Nine Five Ventures Private Limited

Noida

CA Inter

View Details