Bill to & ship to transactions?

This query is : Resolved

mohit (Querist)
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19 March 2019 Sir,

Our Company has GSTN in different states, usually what we do we purchase goods in Bill to Delhi GSTN and ship to different GSTNs.

As per GST provision we can do such transaction but I think Delhi GST department can raise the query that the Goods are being used in different states and ITC are being utilised in Delhi GSTN, hence revenue of Delhi is lost.

Sir, please comment on the above.

SHUBHAM SHARMA

SHUBHAM SHARMA (Expert)
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19 March 2019 Sir, in my humble opinion Invoice of outward supply of goods should be issued to the respective GSTN by Delhi branch.
Thanks and regards
CA Shubham Sharma
contact-9462302922
shubham.vnv@gmail.com

CA Saloni

CA Saloni (Expert)
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23 March 2019 There is a provision in IGST Act, which states that the party of "Bill to" has to raise invoice to "Ship to " party to pass on the credit to the state of consumption.

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SHUBHAM SHARMA

SHUBHAM SHARMA (Expert)
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23 March 2019 In accordance with provisions of Schedule I "Activities to be treated as supply of even if made without consideration"of the CGST Act, supply also include "Supply of Goods or Services or both between distinct persons as specified in section 25", when made in course or furtherance of business. As the ship to is to various distinct persons, there are indeed two transaction here, Hence the above provisions will come into picture.