TMI BlogBill to ship toX X X X Extracts X X X X X X X X Extracts X X X X ..... 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 - Reply By KASTURI SETHI - The Reply = IGST is correct. - Reply By dineshrao ullal - The Reply = Thanks for the info are there any government notification to this which i can also refer - Reply By KASTURI SETHI - The R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eply = 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. - Reply By CS SANJAY MALHOTRA - The Reply = 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 . - Reply By Surender Gupta - The Reply = I agree ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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] - Reply By CS SANJAY MALHOTRA - The Reply = To reiterate CGST and SGST is applicable as supplier and bill to party is in Bangalore. - Reply By Ganeshan Kalyani - The Reply = I agree with the views of Sri Sanjay Sir. - Reply By Ganeshan Kalyani - The Reply = CGST + SGST is applicable. - Reply By KASTURI SETHI - The Reply = ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Really healthy discussion. Experts have enlightened more areas. Cherished indeed. - Reply By dineshrao ullal - The Reply = so we are still confused ? what should we charge CGST+SGST or IGST kindly reconfirm.. - Reply By CS SANJAY MALHOTRA - The Reply = CGST + SGST - Reply By Ramaswamy S - The Reply = 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 - Reply By Ganeshan Kalyani - The Reply = 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 out ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ward 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. - Reply By KASTURI SETHI - The Reply = 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. - Reply By Ganeshan Kalyani - The Reply = Sri Kasturi Sir, I agree with you in total. When GST was to implement, it was said that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. - Reply By Ramaswamy S - The Reply = Please see the clarifications issued by CBEC on this matter. Please refer page 7.41 of R.K. Jain's GST Manual (2nd edition- July 2017). Alternatively, you can also refer to GST Law Times page 600 Volume 2: Issue 3 : 20th July 2017 Regards S.Ramaswamy - Reply By Ganeshan Kalyani - The Reply = Would be grateful Sir, if you can reproduce those provision here. Querist and visito ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs may not have the referred material. Thanks. - Reply By Kishan Barai - The Reply = CGST + SGST would be applicable in your case - Reply By Kishan Barai - The Reply = Lets try to make it simple for all our TMI Members Case : Banglore Buyer B1 is buying form Banglore Supplier B2 asking supplier to ship goods to Mumbai Bill 1 : Banglore B1 to Mumbai = IGST Bill 2 : Banglore B2 to B1 = CGST + SGST Please correct me if i am wrong Thank You - Reply By RAJESHMANGAL AGRAWAL - The Reply = Dear Dinesh Ji, As already answered here your sale will be treated as Intra State sale SGST+CGST will be levied. In my opinion Sec 10(1)(b) is a very helpful section for TAKING INTO ACCOUNT BILL TO SHIP TO TRANSACTION. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - Reply By pradeep kumar - The Reply = Dear Experts i need more clarifications from this topic , because our client has to face so many problems .. in the raise of the e way bill also .. thank you advance by experts - Reply By vijay kumar - The Reply = The flow of ITC is from Bangalore - Bangalore - Mumbai. If the goods are finally sold in Mumbai, the IGST credit (from Bangalore to Mumbai) will be used for payment of SGST by the Mumbai trader and that SGST will go to Maharashtra, as per the adjustment done by the Centre (Presuming this to be a stand alone transaction). If the goods are destined to some other state, IGST is used to pay IGST again and the cycle ends in the state where the goods are consumed and that state gets the tax. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In any case, the tax goes to the state where the goods are finally destined/ consumed. Hence, no error in drafting the law, in my view. - Bill to ship to - Query Started By: - dineshrao ullal Dated:- 23-11-2017 Goods and Services Tax - GST - Got 22 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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