Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Additional place of business in other state

22 July 2020

Hi,

I am opening shop in Maharashtra wherein I am asking supplier to add in their GST additional place of business.

One of my supplier is from Gujrat and he is going to keep in my shop product for sale as he is going to mention my shop address as additional place of business.

As I will be generating invoice on behalf of seller in my shop I just want to know whether I need to issues invoice with cgst,sgst as seller have already mentioned in gst additional place of business as my shop address.

Or should I generate IGST invoice?

Kindly help..

Thanks

Kiran Chandekar

Reply
Follow
Share

10 Replies

CA Mayank A Jain (Chartered Accountant in Practice) (1260 Points)
Replied 22 July 2020

Can you please elaborate. The question is not clear.

Upgrade to CAclubindia Pro. Subscribe Now!

Raj Chaurasia (273 Points)
Replied 22 July 2020

First of all there is no concept of additional place of business in other state.

1.If supplier(from Gujarat in your case) wish to supply their products from your shop in maharshtra, supplier need to take separate registration in Maharashtra.

2. You will be treated as agent of your supplier if you issue tax invoice in your own name. In this case you need to take compulsory registration & charge tax accordingly.

3. But if you issue tax invoice on supplier name itself , then you will need to charge igst & you don't need to take separate registration in gst.

annu Goyal (1102 Points)
Replied 22 July 2020

See Maharashtra and Gujrat both are separate state , soo registration for both have to take different

If any goods sale by Gujrat dealer on behalf Maharashtra principal then Maharashtra dealer have to raised Invoice with SGST and CGST

1 Like

Ansaita Marketplace MLM (12 Points)
Replied 22 July 2020

Hi Raj,

Thanks for your valuable comments if I go with option 3 wherein I will raise invoice on behalf of seller with IGST then there is no need to add additional place of business?.

What should I mention as place of supply as I will be delivering it to customer from my shop in Maharashtra to customer in Maharashtra.?

Kindly help me with answer.

Thanks

Kiran Chandekar

Raj Chaurasia (273 Points)
Replied 22 July 2020

If you go with option 3, invoice shall be in name of Gujarat supplier in which igst shall be charged & place of supply shall be Maharshtra.

To clarify in this case:
1. You will not be treated as agent of Gujarat supplier as you are raising invoice in name of Gujarat supplier.
2.if u r unregistered then u need not to take compulsory registration u/s 24.

Upgrade to CAclubindia Pro. Subscribe Now!

annu Goyal (1102 Points)
Replied 22 July 2020

@ Mr. Raj As gujrat supplier is selling good on behalf of Maharashtra Person then he will be consider as agent

second Place of Supply is Gujrat as goods supplied by Gujrat dealer to customer
place of supplier(Gujrat dealer)
soo it should be Intra state supply

1 Like

Raj Chaurasia (273 Points)
Replied 22 July 2020

I have answered in case if invoice is issued in name of Gujrat supplier ( not Maharashtra supplier).

Plz refer Circular No : 57/31/2018.
Suggestions are welcome!

annu Goyal (1102 Points)
Replied 22 July 2020

@ Mr.Raj
Thnx for welcoming everyone suggestion,
Acc. to Your recommended Circular

The term “agent” has been defined under sub-section (5) of section 2 of the CGST Act as
follows:
“agent” means a person, including a factor, broker, commission agent, arhatia, del credere
agent, an auctioneer or any other mercantile agent, by whatever name called, who carries on the
business of supply or receipt of goods or services or both on behalf of another.

Where the invoice for further supply is being issued by the agent in his
name then, any provision of goods from the principal to the agent would fall within the fold of the said
entry. However, it may be noted that in cases where the invoice is issued by the agent to the customer in
the name of the principal, such agent shall not fall within the ambit of Schedule I of the CGST Act.

As per circular it's fall under defination of agent but not fall in entry I'm Sch-I that means if this entry fall under Sch-I then, principal have to issue invoice to agent and agent can take ITC on that and agent have to register under sec 24

but in present case it's not lies under agent as in Sch-I
but acc. to me This is Intra state supply...
as agent is also consider in defination of supplier
and Yes Place of supply will be Maharashtra , actually while typing the answer Person selling goods in Gujrat remain in mind that why
because as we know that Place of supply for goods where the delivery of goods terminates .

Raj Chaurasia (273 Points)
Replied 22 July 2020

Ya I think I misinterpreted the circular regarding agent definition.

Rajesh Kadam (2 Points)
Replied 26 September 2024

I am having my registration in Uttar Pradesh state. & my registered office is in Mumbai. Now I want to add my registered address as an additional place of business in Uttar Pradesh registration can it be possible.

can you guide please?