One of my clients has made to client located at BKC Mumbai from Pune. But GSTN of client is starting from code 97. Whether CGST/SGST or IGST is to be charged in Sales bill?
11 July 2024
If the GSTIN (Goods and Services Tax Identification Number) of your client starts with "97", it indicates that the client is an entity registered under the Foreign Diplomatic Mission/Consular Post/International Organization (FDI) category. Transactions with such entities have specific GST implications:
1. **Nature of Supply:** Since the client's GSTIN starts with "97", the supply is considered to be to a foreign diplomatic mission, consular post, or international organization.
2. **GST Treatment:** - **Interstate Supply (IGST):** Typically, supplies to entities with GSTIN starting with "97" are treated as interstate supplies. Therefore, IGST (Integrated GST) would be applicable. - **CGST/SGST (Intrastate Supply):** If the supply is being made within the same state (intrastate supply), then CGST (Central GST) and SGST (State GST) would not be applicable in this case, as the recipient's GSTIN starting with "97" signifies that they fall under the IGST category.
3. **Billing:** When invoicing your client located in BKC, Mumbai, you should charge IGST on the invoice. Ensure that the invoice clearly mentions the place of supply (BKC, Mumbai) and the appropriate IGST rate applicable.
4. **Compliance:** It's crucial to correctly identify and charge the correct GST type (IGST in this case) to avoid any compliance issues. Ensure the invoice reflects all required details as per GST guidelines.
Given these points, in your sales bill to the client with GSTIN starting with "97" in BKC, Mumbai, you should charge IGST. Always verify the GSTIN and the applicable GST treatment to ensure compliance with GST laws and regulations. If in doubt, consulting with a GST expert or tax consultant would be advisable for specific cases like these.
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