POS Related query

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As per Section 10 of IGST Act, POS of goods is the location of goods at the time at which the movement of goods terminates for delivery to the recipient.

My query is, What if Recipient is Registered in State Y and he goes to state X and buys goods from state X's supplier and takes delivery in the State X itself (movement ended andgot dlivered to Recipient in X state itself) Here the Supllier will charge CGST + SGST of state X but if he enters GSTIN of Recipient in his GSTR 1, will it render the credit utilisable for Recipient? because we can't avail SGST of another state for paying SGST of home state..
Replies (6)
In this case, since you are not registered in the POS state. There would be No credit available.
Yes you are correct the Recepient cannot avail ITC ...... But if we read the Section 10(1)(a) of IGST Act as reproduced " movement of Goods whether by Supplier or RECIPIENT"

Hence the when supplier is issuing invoice & put the address of "Y" the POS will be the location of "Y" , now even though the goods being handed over to Recepient by supplier in X state but the movement is cause by Recepient & it will terminates on "Y" states .

Now let's suppose if value of consignment is more than 50k , now e-way is required , & in above scenario the E-way portal will accept only IGST .
Moreover in term of Circular 90/9/2019 , it's being mandatory to mention POS in Tax Invoice to make sure that state where the goods are consumed got the GST Tax
Right, this makes sense.. so I can interpret it in this way?, "The delivery is given to the recipient in State X but movement created by recipient terminates at state Y and hence POS shall be State Y"
Yes correct ..... the law is interpreted like this only & the E-way portal is aligned accordingly.
Moreover I cannot understand that what is the confusion it's clearly written " movement by Supplier or Recepient or any third person"
Confusion was because of "....time at which the movement of goods terminates for the DELIVERY TO THE RECIPIENT"

I was confused because I took it as "movement was ended for Supplier for the delivery to the recipient at the same time when the recipient took delivery from his shop" and I was interpreting this particular point of time as a Place of supply... which is wrong...

But now I'm clear.. Thanks...
This transaction should treat as IGST transaction rather than considering literally construction of law. we have to understand the meaning i.e. where the delivery is terminated.


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