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Bill to ship to, Goods and Services Tax - GST

Issue Id: - 113096
Dated: 23-11-2017
By:- dineshrao ullal
Bill to ship to

  • Contents

Hi, we are a trading unit and having our registered office in Bangalore,

My question is as follows

IF I receive a purchase order from a Bangalore based company asking me to bill to Bangalore but ship to Mumbai should I apply CGST and SGST or IGST.

My customer is asking for a CGST and SGST billing but when I am shipping the goods when I prepare the e waybill the online portal allows me to fill only the IGST details.

What is the correct tax type that I have to use?

Kindly advice.

Thanks and regards

Dinesh Rao Ullal

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Posts / Replies

Showing Replies 1 to 15 of 20 Records

1 Dated: 23-11-2017
By:- KASTURI SETHI

IGST is correct.


2 Dated: 23-11-2017
By:- dineshrao ullal

Thanks for the info are there any government notification to this which i can also refer


3 Dated: 23-11-2017
By:- KASTURI SETHI

Ultimate destination for delivery and consumption is Mumbai. Hence place of Supply is Mumbai. It is to be treated as inter-State supply. Read Section 7 (1) of IGST Act. 2017.


4 Dated: 23-11-2017
By:- CS SANJAY MALHOTRA

CGST and SGST is applicable as tax depends upon Bill to party.

Banglore party shall raise his invoice charging IGST. As rightly said by Kasturi ji, that GST is consumption based tax hence when banglore co sourcing material from you raises invoice on Mumbai, IGST is levied and consuming state gets tax.

When the goods are removed on instructions of third person, time and place shall be delivery’s of such third person. Refer section 10(1)(b) of IGST Act.


5 Dated: 23-11-2017
By:- Surender Gupta

I agree with the views expressed by learned experts. CGST plus SGST or IGST is applicable on the basis of place of supply of goods. In your case the place of supply of goods on the instructions of the third-party is outside the state of Karnataka, but it is subject to exception. Since the location of third party in within your state, it will be intra-state supply and CGST+SGST will be applicable.  [Reply as Corrected]


6 Dated: 23-11-2017
By:- CS SANJAY MALHOTRA

To reiterate CGST and SGST is applicable as supplier and bill to party is in Bangalore.


7 Dated: 24-11-2017
By:- Ganeshan Kalyani

I agree with the views of Sri Sanjay Sir.


8 Dated: 24-11-2017
By:- Ganeshan Kalyani

CGST + SGST is applicable.


9 Dated: 24-11-2017
By:- KASTURI SETHI

Really healthy discussion. Experts have enlightened more areas. Cherished indeed.


10 Dated: 24-11-2017
By:- dineshrao ullal

so we are still confused ?

what should we charge CGST+SGST or IGST

kindly reconfirm..


11 Dated: 24-11-2017
By:- CS SANJAY MALHOTRA

CGST + SGST


12 Dated: 24-11-2017
By:- Ramaswamy S

In a bill to ship to transactions - there are two transactions and not one.

In the instant case, Bangalore party (recipient) places an order another Bangalore party (supplier) to bill to recipient and ship to Mumbai (consignee).

The first transaction - Bangalore (supplier) to Bangalore (Bill to) (recipient) [ ship to Mumbai]

The supplier raises a intra state invoice charging CGST+SGST. The ITC is availed by the recipient and also makes the payment to the supplier. The recipient is deemed to have received the goods. GSTR-1 (supplier) and GSTR-2 (recipient) matched

The second Transaction - Bangalore (recipient) to Mumbai (consignee)

The recipient raises an invoice to Mumbai party (consignee) charging IGST (Mumbai). The consingee takes the ITC on the invoice of the recipient and receiving the goods on the supplier's invoice. GSTR-1 of the recipient and the GSTR-2 of the consignee matched.

Regards

S.Ramaswamy


13 Dated: 24-11-2017
By:- Ganeshan Kalyani

In view of the complications as highlighted by Sri Ramaswamy Sir, it is advisable to do direct billing i.e. ask Karnataka supplier to bill to Mumbai. Here, Karnataka supplier will upload outward supply in GSTR 1 which will get auto populated in GSTR 2A of the Mumbai party. Mumbai party will accept it and there by credit is availed by Mumbai party.

Whereas in case of Bill to ship to transaction the billing pattern as explained nicely by Sri Ramaswamy Sir need to be followed which increased additional compliance for the purchaser.


14 Dated: 25-11-2017
By:- KASTURI SETHI

Nobody is wrong including Querist. Law has been framed wrongly hurried. Goods in question have been physically consumed outside the State. However all experts have interpreted intricacies nicely. No need to explain more.


15 Dated: 25-11-2017
By:- Ganeshan Kalyani

Sri Kasturi Sir, I agree with you in total. When GST was to implement, it was said that it is a consumption based tax. So in this query, IGST should be applicable. But when actual is published the interpretation of the law states that the place of supply is within the state , hence CGST + SGST will be applicable.

Really the law is drafted in hurry. Lot of clarifications still required. Thanks.


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