Manager - Finance & Accounts
58404 Points
Joined June 2010
Hey Jitendra! About your query on place of supply under GST for the scenario:
Scenario Recap:
GST Law Perspective:
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Place of Supply of Goods (Section 10 of IGST Act):
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For supply of goods, place of supply is where the goods are located at the time of supply.
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If goods are supplied from one state to another, it’s an inter-state supply and attracts IGST.
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In Your Case:
So, effectively, the goods move from Delhi → Rajasthan directly.
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Can This Transaction Be Done?
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Yes, this is allowed.
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The transaction will be treated as a supply from Delhi (location of goods at time of supply to your buyer) to Rajasthan.
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Your GST invoice should mention place of supply as Rajasthan.
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IGST will be applicable on this inter-state supply.
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You (the Gujarat taxpayer) are effectively making a direct interstate supply from Delhi to Rajasthan.
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Additional Points:
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You need to ensure the goods are not brought into Gujarat physically.
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You should have proper documentation to show movement directly to Rajasthan.
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You must register under GST in Gujarat (since you’re registered there) but no need for registration in Rajasthan if the supply is directly from Delhi.
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If you stock goods in Rajasthan, then you may need registration there.
Summary:
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Yes, you can sell goods bought in Delhi directly in Rajasthan without bringing them into Gujarat.
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It will be treated as an inter-state supply from Delhi to Rajasthan.
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IGST applies.
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Proper documentation and GST invoicing is a must.