03 June 2017
we are manufacturer and we get some Purchase Order in which buyers and consignee is different and in different state for example buyer is in Delhi and consignee is in Haryana.
My query is that which state will we mentioned in place of supply.
kindly advise.
Rakesh Sharma
04 June 2017
You have to add buyer and consignee details in bill. Billing will be done to buyer and delivery to consignee business. Which amounts to e-1 sales
10 August 2024
Under the **GST Act**, the determination of the place of supply is crucial for correct GST compliance and for charging the appropriate GST rate. Here's how you should handle the situation where the buyer and consignee are in different states:
### **Place of Supply Rules under GST:**
**1. **Goods Supply (Inter-State vs. Intra-State):** - **Inter-State Supply:** If the goods are supplied from one state to another, it is considered an inter-state supply, and Integrated GST (IGST) will be applicable. - **Intra-State Supply:** If the supply occurs within the same state, then State GST (SGST) and Central GST (CGST) will apply.
**2. **Place of Supply Rules for Goods:** - **Section 10 of the CGST Act:** The place of supply for goods depends on the movement of goods. - **Goods Supplied on a Bill to Ship to Basis:** - **If the goods are supplied and the movement of goods is from one state to another:** - **Place of Supply**: The place where the goods are delivered (the consignee’s location).
- **Example:** If the buyer is in Delhi and the consignee is in Haryana, and the goods are delivered to Haryana, then Haryana will be the place of supply. IGST will be applicable since it is an inter-state supply.
**3. **Important Points to Consider:** - **Invoice Details:** Ensure that the invoice correctly mentions the consignee’s state and that IGST is charged if the supply is inter-state. - **Transporter’s Documentation:** The transporter's documents should reflect the delivery to the consignee's location.
### **Specific Scenario:**
- **Buyer:** Delhi - **Consignee:** Haryana - **Movement of Goods:** From the manufacturer to Haryana.
**In this case:** - **Place of Supply:** Haryana (where the goods are delivered). - **GST to be Charged:** IGST, since it is an inter-state supply.
### **Summary**
For the situation where the buyer and consignee are in different states, the **place of supply** for the purpose of GST is the place where the goods are delivered, which in this case is the consignee's location. You should charge IGST and ensure that your documentation reflects this correctly.
CAclubindia
