GST accounting Concept

This query is : Resolved

Pragati Sharma (Querist)
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17 December 2020 A GST Reg. business having 2 separate reg, 1 in Assam and another in West Bengal with same trade name. Goods were imported at West Bengal port under GSTIN of Assam unit.

Half of the imported goods were kept at CHA, West Bengal after clearance from port and the other half at West Bengal unit address for sale to customers.

Tax invoice were issued to customers for supply by the Assam unit for the above-mentioned goods on their name.

However, since the goods were at West Bengal while generating e-way bill they mentioned GSTIN and name of Assam unit but address of West Bengal was mentioned for "From" place. "To" place was correctly mentioned that of the customer. West Bengal unit address was given for estimation of correct distance for eway bill.

Query:
a. Whether the assessee has made wrong billing under GST, since the goods were at West Bengal and not Assam at the time of supply?
b. What should have been correct billing procedure if the above made by assessee is wrong?
c. Can the AO make us a defaulter and demand any penalty from us?

Lekhraj sood

Lekhraj sood (Expert)
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18 December 2020 Your procedure and billing done is absolutely correct.

Pragati Sharma

Pragati Sharma (Querist)
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19 December 2020 Sir is it not required that the goods should be at the place of supplier at the time of supply? In my case goods were at another state

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Lekhraj sood

Lekhraj sood (Expert)
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19 December 2020 No , it is not necessary.

Pragati Sharma

Pragati Sharma (Querist)
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21 December 2020 Thank you for your response Sir.
In the above case as per my understanding, the location of goods won't matter in case of supply of goods. As per Section 10(1)(a) of the IGST Act, the Place of supply shall be the location where the goods terminate for delivery to the recipient.

Sir whether my above understanding correct in this respect?