Sir I have one query for my company is in Maharashtra and my site is running in MP my site supervisor purchased AC machine from MP supplier and he raised invoice in the name of my company which is in Maharashtra, so in this case what will be place of supply and what GST to be charged ?
30 Replies
Nilesh Pandya
(proprietor)
(304 Points)
Replied 19 March 2019
https://www.caclubindia.com/forum/place-of-supply-507590.asp
Priya Kashyap
(Student)
(7053 Points)
Replied 19 March 2019
@ nilesh I know but I wanna know it's correct answer ASAP and reason
V Hajib
(Registered Insolvency Professional Registered Independent Director with MCA)
(54 Points)
Replied 19 March 2019
IGST will be levied.
The invoice is the name of firm regiastered in Maharastra and GSTN number which is of Maharastra will be quoted.
Place of supply will be maharastra.
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 19 March 2019
As per the Query...
I think the AC installed in the site of MP.
So, place of supply MP, GST chargeable as CGST and SGST...
I think the AC installed in the site of MP.
So, place of supply MP, GST chargeable as CGST and SGST...
pritesh
(CA Final student)
(7101 Points)
Replied 19 March 2019
He should charge Cgst and sgst..
because as per place of supply of goods..gst should be charged where the delivery terminate..in your case delivery is getting competing in MP then Cgst and Sgst should be charged
because as per place of supply of goods..gst should be charged where the delivery terminate..in your case delivery is getting competing in MP then Cgst and Sgst should be charged
Priya Kashyap
(Student)
(7053 Points)
Replied 19 March 2019
@ pritesh can't we say that site in Ml is registered and hence intra state shall apply
but why can't IGSt applicable since the invoice contains name of company in Maharashtra
but why can't IGSt applicable since the invoice contains name of company in Maharashtra
V Hajib
(Registered Insolvency Professional Registered Independent Director with MCA)
(54 Points)
Replied 19 March 2019
Item has been supplied on direction of person in Maharastra.
That is why I said IGST is to be paid in this transaction
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 19 March 2019
Better to think the supply made to site... & it's AC.
Ajay Singh
(-)
(127 Points)
Replied 19 March 2019
can someone post an absolute picture of this with a true and fair solution??????
Priya Kashyap
(Student)
(7053 Points)
Replied 19 March 2019
I think raja pm is correct
still if anyone has something to clarify can do
still if anyone has something to clarify can do
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 19 March 2019
As per Section 10(1)(b) , The POS will be the Maharashtra .
As billing is done to Maharashtra Address & ship to MP address .
Goods are delivered by the supplier to a recipient or any other person (Site at MP), on the direction of a third person (Maharashtra)
It shall be deemed that the said third person has received the goods and the POS of such goods shall be the principal place of business of such person.
Note :
If your MP site address is Registered , then Maharashtra Has to raise the Bill for same to MP site address.
As billing is done to Maharashtra Address & ship to MP address .
Goods are delivered by the supplier to a recipient or any other person (Site at MP), on the direction of a third person (Maharashtra)
It shall be deemed that the said third person has received the goods and the POS of such goods shall be the principal place of business of such person.
Note :
If your MP site address is Registered , then Maharashtra Has to raise the Bill for same to MP site address.
Priya Kashyap
(Student)
(7053 Points)
Replied 19 March 2019
@ Pankaj sir you're Krishna for our GST related queries, thanks for orderly explanation
what is meant by the point in the note
that Maharashtra has to raise bill in case no site registered.
does it mean that two bills raised together one from the actual supplier in no and one from the principal(case of principal agent) I'm Maharashtra????
what is meant by the point in the note
that Maharashtra has to raise bill in case no site registered.
does it mean that two bills raised together one from the actual supplier in no and one from the principal(case of principal agent) I'm Maharashtra????
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 19 March 2019
The Supplied good is AC to the site...
The said supply is located to MP and POS MP...
The said supply is located to MP and POS MP...
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 20 March 2019
@ Priya
If the Site of Maharashtra Dealer in MP is registered Then as per Section 25 CGST Act it's a Distinct Person , Hence As per Schedule I , the Maharashtra Dealer is liable to Raise the bill for AC to MP site.
See , Actually the Maharashtra dealer need not to take Registration in M.P. in terms of Section 22 CGST Act that , "Every Supplier is liable to make supply of Goods & Services FROM WHERE HE IS REGISTERED" hence if Maharashtra dealer is Registered in Maharashtra he can provide services from Maharashtra to his MP site. , means can transfer any captial goods to that site on Delivery challan ,... but ... if In MP site Maharashtra dealer has a "Fixed Establishment" for operation in MP then Maharashtra Dealer is liable obtain Registration in MP site also .
Hence in my view if AC is purchased for MP site is to installed in Office of supervisor or person in-charge of site , that means the MP site has a fixed Establishment so must have Registration in MP .
Kindly also refer AAR Rajasthan v/s M/s JAIMIN ENGINEERING PRIVATE LIMITE
Refer Section 10(1)(b), 0f IGST Act , Section 22 CGST Act & the definition of "Fixed Establishment" in Section 2 of CGST Act
If the Site of Maharashtra Dealer in MP is registered Then as per Section 25 CGST Act it's a Distinct Person , Hence As per Schedule I , the Maharashtra Dealer is liable to Raise the bill for AC to MP site.
See , Actually the Maharashtra dealer need not to take Registration in M.P. in terms of Section 22 CGST Act that , "Every Supplier is liable to make supply of Goods & Services FROM WHERE HE IS REGISTERED" hence if Maharashtra dealer is Registered in Maharashtra he can provide services from Maharashtra to his MP site. , means can transfer any captial goods to that site on Delivery challan ,... but ... if In MP site Maharashtra dealer has a "Fixed Establishment" for operation in MP then Maharashtra Dealer is liable obtain Registration in MP site also .
Hence in my view if AC is purchased for MP site is to installed in Office of supervisor or person in-charge of site , that means the MP site has a fixed Establishment so must have Registration in MP .
Kindly also refer AAR Rajasthan v/s M/s JAIMIN ENGINEERING PRIVATE LIMITE
Refer Section 10(1)(b), 0f IGST Act , Section 22 CGST Act & the definition of "Fixed Establishment" in Section 2 of CGST Act
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