urgent question

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hey,
we have gst no. of delhi.
we are sending goods more then 40 lakh rs..I have to raise one B2B invoice.
but the company address and delivery address both are different. company has Karnataka gst no. and delivery address is Delhi. what we should charge. if we apply gst as per supply it should be cgst and sgst but they has Karnataka gst no. so how can we charge cgst and sgst. if we charge igst but place of supply is Delhi..
Replies (10)

Rule of Charging GST is completely based on Place of Supply, You should charge CGST & SGST on that party (Karnataka GSTIN). When you will file GSTR1 then you have to choose Place of Supply as Delhi.

i greatly appreciate the assistance you have provide me. thank you for yout response to my query

Most Welcome!!!

IGST is to be charged as per section 10(1)(b) of IGST Act, 2017 since POS is Karnataka.

which one gst should I charge??

Section 10 (1)(b) of IGST Act will not applicable here, because this is not related to any third person.

As per Section 10(1)(a) of IGST Act : Place of Supply will be where goods delivered, In that case CGST or SGST will be charge & place of supply will be Delhi.

Please correct me If I am wrong...

Every registered person is treated as a distinct person so same company in Karnataka & Delhi are distinct person. So in my view 10(1)(b) is applicable.

Logically if goods not transit out of Delhi then why should I pay to Karnataka Government, If we will charge IGST then Tax will be distribute with Karnataka Gov.

Whereas 10 (1)(b) is saying about Third Person involvement : It means Goods sold to Karnataka GSTIN but his client is in Delhi & he want to deliver that Goods in Delhi.

and 10 (1)(a) is saying : It means Goods sold to Karnataka GSTIN but he is belongs to Delhi also as branch & want to deliver in his Delhi Branch.

Hope It is clear as per my view.

 

After Bhagwat Singh raises tax invoice to Karnataka. Karnataka in turn will raise a tax invoice to Delhi as per section 10(1)(c). Now suppose the Delhi co. sold the goods to a consumer it will charge CGST/SGST. So ultimately CGST/SGST being charged since GST is a destination or consumption based taxation system i.e. you pay the tax where you consume.

2 transactions. first you charge IGST as POS is Karnataka due to bill to/ship to transaction. karnataka party will raise invoice on its Delhi party charging IGST as for him POS is Delhi.


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