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Place of suppl

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A registered taxpayer from Gujarat buys goods in auction from Delhi. And wants to sell the same goods directly in Rajasthan without taking delivery in Gujarat. So can such transaction be done in gst law?
thanking you
Replies (1)

Hey Jitendra! About your query on place of supply under GST for the scenario:


Scenario Recap:

  • Registered taxpayer in Gujarat buys goods via auction from Delhi.

  • Wants to sell goods directly in Rajasthan without bringing them into Gujarat.


GST Law Perspective:

  1. Place of Supply of Goods (Section 10 of IGST Act):

    • For supply of goods, place of supply is where the goods are located at the time of supply.

    • If goods are supplied from one state to another, it’s an inter-state supply and attracts IGST.

  2. In Your Case:

    • The taxpayer in Gujarat buys goods in Delhi (goods located in Delhi).

    • Then sells goods directly in Rajasthan without bringing goods to Gujarat.

    So, effectively, the goods move from Delhi → Rajasthan directly.

  3. Can This Transaction Be Done?

    • Yes, this is allowed.

    • The transaction will be treated as a supply from Delhi (location of goods at time of supply to your buyer) to Rajasthan.

    • Your GST invoice should mention place of supply as Rajasthan.

    • IGST will be applicable on this inter-state supply.

    • You (the Gujarat taxpayer) are effectively making a direct interstate supply from Delhi to Rajasthan.

  4. Additional Points:

    • You need to ensure the goods are not brought into Gujarat physically.

    • You should have proper documentation to show movement directly to Rajasthan.

    • 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.

    • If you stock goods in Rajasthan, then you may need registration there.


Summary:

  • Yes, you can sell goods bought in Delhi directly in Rajasthan without bringing them into Gujarat.

  • It will be treated as an inter-state supply from Delhi to Rajasthan.

  • IGST applies.

  • Proper documentation and GST invoicing is a must.


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