Type of gst applicable in case of ex factory delivery

867 views 2 replies

Danish

Accounts Executive

73 Points Joined February 2014

i am a manufacturer from gujarat and my buyer is from delhi but my buyer wants that i should handover the goods to his people at my factory only i.e at gujarat and his people will distribute the goods all over india with there own invoices.

value of goods is 16 lakhs so my question is at the time of issuing invoice what type of gst is applicable cgst + sgst or igst and buyer also told me that e way bill is not applicable since it is ex factory delivery so pls confirm is this fair trade practice or i will be in trouble in future???

Replies (2)

Pankaj Rawat

GST Practitioner

55067 Points Joined June 2017

Yes he is correct , As per section 10(1)(b) of IGST , you can Bill to Your Cusotmer at Delhi & on the direction of him can give a delivery at Gujrat at factory . Hence you will charge IGST on the Bill

As per Notification 12/2018 CT : The Eway is mandatory if the consignment value exceeds 50k & transported via Motorised conveyance.
So , the customer taking delivery at your factory & the value of goods exceeds 50k & they carrys those goods via Motorise conveyanve , you are liable to generate Eway Bill.