Place of supply ( cgst/sgst or igst): urgent

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 September 2018 Respected Members

I request you to please answer the below mentioned query:

M/s XYZ Pvt Ltd. have a dealership of Honda bikes, they having showroom in Delhi ( Cannaught Place).

They are selling bikes to customers from their C.P based showroom and also billing from the same place.

Now what will be the place of supply and what will be be charged on Invoice either CGST/SGST or IGST in the below cases:

1. If the bike is delivered to customer at showroom, no further obligation of delivery at particular place.Customer residence address is in Gurugram, billing also done on same address..

2. If the customer requested to deliver the bike at his residential address i.e. in Gurugram, Also the billing address is Gurugram.

Thanks.

Rajesh Kumar

Rajesh Kumar (Expert)
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04 September 2018 1. In the first case the goods are delivered at your showroom. As location of the supplier as well as place of supply is Delhi, it is an intra-state sale and CGST/SGST shall be payable.
2. In the second case place of supply is Gurugram, Haryana as the supply involves movement of goods and place of supply shall be the place where the movement ends. [Section 10(1)(a) of the IGST Act.
--- In such cases as the vehicles are required to be registered, place of registration ought to be treated as place of delivery. Thus, if a vehicle sold in Delhi is required to be registered in UP or Haryana, IGST ought to be paid. Probably, till date registering authorities may not be insisting on this for lack of knowledge, but I am sure soon they shall start insisting.