PLACE OF SUPPLY in case of Delivery

Place of supply is Maharashtra

Originally posted by : vinod kahar
	My query is relate to determination of Place of supply where the goods being supplied.Supplier 'A' is registered in Delhi where as Receiver 'B' is registered in Maharashtra.Supplier 'A ' deliver the goods to 'B' in the state delhi itself and Receiver 'B' undertake onus to transport goods from delhi to its principal place of business i.e. mumbai(maharashtra)may i know the correct place of supply for determination of nature of supply whether it is intra-state or inter state .

When A supplies the goods to B in Delhi itself he would charge CGST and SGST since the goods are delivered in Delhi itself.

B supplying goods from Delhi to its branch in Mumbai will charge igst on supply of goods to distinct person.

For the sake of complexity sometimes the goods are delivered in Delhi only and IGST is charged quoting Maharashtra GSTN simply showing the said transaction as bill to ship to which is really a very wrong practice.

These leads to wrong classification of tax.

Place of supply is who consumes the goods or pay consideration for the goods. Therefore, B being the consumer / Payer having registration in Maharashtra would be Place of Supply and A wiil charge IGST on Bill.

But Place of Delivery will be Delhi.

In determination of charging CGST /SGST / IGST on an invoice, Place of Supply matters only.