03 April 2019
Buyer located outside India. He raised Purchase Order on Indian Supplier with instruction of material supply In India to third party . Payment revived by supplier in foreign currency GST applicability on this transaction. Regards
Subject to the provisions of section 10, supply of goods—-
Where the location of the supplier
And
The place of supply of goods is in the same State or same Union territory shall be treated as intra-State supply: {Section 8(1) of IGST Act}
With the help of following example; meaning of intra- supply should be understood:
(a) A Limited incorporated in Uttar Pradesh having purchased certain goods in Odisha from Mr. B and supplying the same to the customer also in Odisha. In this case, there are two separate transactions of supply:
> First From Mr. B to A Limited-—In this case, movement of goods were started and terminated in same state. Hence registered office of A Limited is not relevant.
> First From A Limited to Customer: In this case, movement of goods were started and terminated in same state. Hence registered office of A Limited is not relevant
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