Dear Members,
Please explain the tax (IGST/UGST) applicable in the following scenario.
Suppose if there is sale from B in one state to Buyer A in another state and the Buyer A is directly sending material from Supplier A premises to Customer C premises who is in Union Territery.
here, what tax is applicable if A wants to raise bill to C. IGST or UGST.
Please clarify.
Thanks in advance.
Venu
Sec.10(1)(b) of the IGST Act, “where the goods are delivered by the supplier to a recipient or any other person on the direction of a third person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to the goods or otherwise, it shall be deemed that the said third person has received the goods and the place of supply of such goods shall be the principal place of business of such person.”
Sec.10(1)(c) of the IGST Act, “where the supply does not involve movement of goods, whether by the supplier or the recipient, the place of supply shall be the location of such goods at the time of the delivery to the recipient.”
Supplier: B
Recipient: C
Other Person: A
Place of Supply: Place of delivery of goods
(i.e. location of C in UT) [Sec. 10(1)(c)]
(Deemed supply of goods from B to A)
GST Applicable in billing from A to C: IGST
As per Sec. 7 of the IGST Act, it will be an inter-state transaction. Supplier State and Place of Supply UT.
@ Mr. Venu.,
Please reply the 'C' s Location....
Dear Mr. Raja,
C's location is any Union Territory.
| Originally posted by : venu | ||
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Dear Mr. Raja, C's location is any Union Territory. |
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You mean involved three states (C is another location off A and B) If Yes...
You will follow Mr. Pankaj Rawat's view...
Billing required IGST.
Dear Mr.Deepak,
Here 3 persons are involved.
Person A : GST Registered: Buyer (Buys from B) : Belongs to state X
Person B: GST registered: Supplier (Sells to A) in state Y but delivers the goods to Person C (located in Union Territory Z) on behalf of A.
Person C: GST registered in Union Territory Z: Recipient of Goods from B(But actual seller to C is A)
BILLING:
B will do IGST billing to A
What will be the billing from A to C?
Is it IGST or UGST.
Dear Mr. Pankaj,
Yeah. Here A, B and C belong to three different states. But the C's state is UT.
If A wants to bill C, then he should raise IGST billing. Right?
| Originally posted by : venu | ||
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Dear Mr. Pankaj, Yeah. Here A, B and C belong to three different states. But the C's state is UT. If A wants to bill C, then he should raise IGST billing. Right? |
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UTGST is applicable to Intra State Movements... Not for Inter State Movements...
SINCE ALL THE 3 PARTIES HAVING GSTN OF DIFFERENT STATE , SO WHOMSOVER DOES BILLING IS TO BE DONE BY CHARGING IGST
CAclubindia
