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Prathyusha Varma (ArticleShip)     03 June 2021

Place of Supply IGST vs CGST

Dear Experts,

E-commerce sale Mr. Raj of Mumbai, Maharashtra orders a mobile from Amazon to be delivered to his mother in Lucknow (UP) as a gift. M/s ABC (online seller registered in Gujarat) processes the order and sends the mobile accordingly and Mr. Raj is billed by Amazon.

What should we charge here CGST/ SGST or IGST ?

Thanks in advance


 21 Replies

 CA Subhankar  Basu

CA Subhankar Basu (Chartered accountant )     03 June 2021

As per the sec 10(1)(a) place of supply is location where movement of goods terminated ,here movement of goods terminated at UP ,& location of actual seller,ABC ( not e-commerce )is Gujrat ...so it's inter state supply ...igst will be applicable
Prathyusha Varma

Prathyusha Varma (ArticleShip)     03 June 2021

This example was mentioned in clear tax place of Supply provisions but cleartax said taht we should treat as intra sale !
 CA Subhankar  Basu

CA Subhankar Basu (Chartered accountant )     03 June 2021

No ,I think place of supply would be where movement of goods will terminates...in problem is UP ,it's immaterial whether actual seller selling the goods directly or e-commerce ,here location of supplier is Gujrat ,so place of supply & location of supplier not in same state,hence it's inter state , e-commerce operator collect tcs ( igst ) & pay to government ,same tcs will credit in electronic cash ledger of actual seller ,rest amount remit to seller
CA Altamush Zafar

CA Altamush Zafar (GST Consultant)     03 June 2021

IGST will be charged.......

Deepak Kumar

Deepak Kumar   03 June 2021

IGST will be charged and Agree with subhankar ji
Ajay Kumar

Ajay Kumar (Account Supervisor)     03 June 2021

IGST WILL BE CHARGED BUT PLACE OF SUPPLY IN MUMBAI AS BUYER MR RAJ IS IN MUMBAI
 CA Subhankar  Basu

CA Subhankar Basu (Chartered accountant )     03 June 2021

@ ajay .....place of supply is UP ,where movement of goods terminated ,as per sec 10(1)(a)
Ajay Kumar

Ajay Kumar (Account Supervisor)     03 June 2021

Sir this translation cover 3 parties where principal buyer who is in Mumbai directing Gujrat seller to deliver goods in up. as per section 10 (1) b Principal place is place of supply which is Mumbai.
 CA Subhankar  Basu

CA Subhankar Basu (Chartered accountant )     04 June 2021

Ajay sec 10(1)(b) not applicable because relative (mother) is not at all client raj if you apply bill to ship concept then there would be two transactions
1.abc to Raj
2.raj to his mother
section 10(1)(a) ... where supplier supply the goods to the client by giving direction to another supplier to supply the same to his client .... unfortunately there is no supplier recipient relationship between son & mother, mother not at all client of Mr Raj
so sec 10(1)(a) will apply
Ajay Kumar

Ajay Kumar (Account Supervisor)     04 June 2021

Sec 10(1)(b) :- 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
in that case there is also no relation between mother and seller. Buyer from Mumbai is liable to pay.
 CA Subhankar  Basu

CA Subhankar Basu (Chartered accountant )     04 June 2021

@ Ajay ... according to you place of supply is principal place of business of third part means Raj ...but Raj is not doing business ,he is normal salaried person ,don't have place of business .... section 10(1)(a) will apply
Ajay Kumar

Ajay Kumar (Account Supervisor)     04 June 2021

No matter sir whether it is registered or unregistered his mother also unregistered in that case
 CA Subhankar  Basu

CA Subhankar Basu (Chartered accountant )     04 June 2021

@ Ajay , I think you thinking in wrong way ...here Raj normal salaried person & unregistered ..Raj does not have place of business ...you unnecessary dragging the issue ...if you doing CA ,then read provision twice ,& don't drag the issue ,you told whatever you wanted ..so close it
1 Like
Prathyusha Varma

Prathyusha Varma (ArticleShip)     05 June 2021

Thanks for the response, what if location of company is Hyderabad, Place supply for 5 employees is Chennai & 3 employees is Hyderabad. Vendor location is Hyderabad and going to bill company. How invoicing to be done here ?

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