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Regarding IGST

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jitendra rout

assistant accountant

38 Points Posted on 26 April 2020

Dear sir/ Madam,

I have procured fish from Andrapradesh to Uttarpradesh in this case we need some crates for keep the fish to supply fish from Andrapradesh to Uttarpradesh so I have purchased crates at Andrapradesh .

so my query is when the crates vendor has billing to Uttarpradesh gst and
they have mention CGST and SGST .

Is this correct when I asked to change it IGST they told me they are deliverd it to Andrapradesh for immediate use of that crates but I have not any registration at Andrapradesh .

should we process it SGST and CGST.

please let me know .

Replies (3)

Quick Summary

This discussion clarifies the correct Goods and Services Tax (GST) application when transporting goods, specifically fish, between states. If you purchase items in one state (Andhra Pradesh) for immediate use and delivery there, but your business is registered in another state (Uttar Pradesh) with no registration in the purchase state, IGST should be applied. The supplier should issue an invoice using the 'Bill to, Ship to' model, reflecting the destination state (UP) as the billing address and the delivery location (AP) as the shipping address. Relying on CGST and SGST in such inter-state transactions is incorrect according to the IGST Act.

Pankaj Rawat

GST Practitioner

29904 Points Posted on 26 April 2020

No.... it's not correct ,
In term of Section 10(1), The bill must be raised on the basis "Bill to , Ship to " model , Hence can charge IGST.
Bill to : UP
Ship to : AP

RAJA P M

"Do the Right Thing...!!!"

77792 Points Posted on 26 April 2020

Yes... I agreed to Mr Pankaj Rawat Ji reply...

@ Mr Jitendra Rout.,

If You don't have any registeration in AP then supplier (UP) must be charge IGST in supply invoice as per IGST act.
So, refer the section 10(1) of IGST act to the supplier and ask the invoice with IGST.

CA Altamush Zafar

GST Consultant

10402 Points Posted on 26 April 2020

It seems that the vendor has sold the goods ex-factory therefore delivery has been terminated in Andhra Pradesh itself. It will be prudent to enter into proper written agreements where everything is clarified. You can also check the terms & conditions in invoice if there are any about the mention of ex-factory sales.

Proper care needs to be taken while deciding on the model of sales and purchase. Contracts play a big role in this and they have to be very carefully drafted.