My client Mr XYZ is GST Registred dealer in Andhra Pradesh, My client got material supply order from Karnataka GST Registred Dealer with 2 conditions 1)Materail should be dispatched within andhra preadesh, 2) Tax Invoice Billing to Karnataka state with IGST Tax
now my client is suppliing materail with in andhra pradesh and billing to karnataka state with IGST Is it right process??
08 July 2021
Yes, this is possible as per section 10(1)(b) of IGST Act. Supply to a recipient on the direction of a 3rd person (KA dealer). The buyer in this case is in KA and the consignee is in AP and IGST would be levied accordingly.
09 July 2021
for purpose of eway bill, this transaction amounts to bill to ship to as bill to party is in karnataka and ship to party is in andhara pradesh. As per FAQs on eway bill issued by CBIC, tax components in eway bill shall be on the basis of bill to party if the bill to state and ship to state are two different states. accordingly also, you shall charge IGST on this transaction.
CAclubindia
