Mr. X (nepal), customer
Mr. Y (mumbai), shopowner
X visits mumbai and purchase goods from Y's shop, X paid Y in cash for the good purchased.
X went back to nepal after such purchase.
In this case, what would you suggest your client Y to charge (IGST or CGST & SGST)?
What will be the place of supply?
Menu
Place of Supply
Replies (5)
Quick Summary
Place of Supply will be Mumbai, accordingly CGST & SGST will be charged.
I think it will be IGST because place of supply is outside of India
The place of supply will be Mumbai as per goods supply to x within the state of Maharashtra, hence cgst sgst, will apply.
Okai thanks
Section 10 of IGST Act determines the Place of Supply.
Where there is a movement of goods (either by supplier, recipient or any other person) - the place of supply is where goods terminate for delivery.
Where there is no movement of goods - the location where goods are handed over.
In your case, it is impossible to determine whether the customer may take to Nepal, or to any other state, therefore, for your transaction, the delivery ends at the shop and CGST & SGST is liable.
Where it is clear that goods are going to Nepal (ex: supplier has to ship the goods), then IGST needs to be charged.
Ensure terms and conditions in invoice cover this aspect to avoid future disputes.
Recent Topics :
- GSTR1 amendment Bulk bills
- Capital Gain on Sale of Gold
- GST SALES RETURN MISSING 2025-26 FY
- Enquiry on FAST-DS system generated email
- Capital gain on sale of agriculture land
- Demand from TRACES
- FY 2025-26 ITC CLAIM DUE DATE
- 96084000 and 48202000 HSN code ka Tax Rate kya hai
- Clarifications for intra day transactions
- CA FINAL FR FINANCIAL INSTRUMENTS (Ind AS 109) Dou
Related Topics :
CAclubindia
