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Gstn within state but supply outside the state(gst allocation in Gstr_1)

siva andhavarapu (ca final) (388 Points)

25 January 2022

Mr.A had registered gstn in kerala state but he has a construction project at tamilnadu.Mr.B having gstn in kerala state had supplied and delivered materials to tamilnadu and generated invoice with Igst(place of supply rule).While filing gstr1,Mr.B is facing an issue with the gst allocation.If Mr.B gives Gstn of Mr.A,gst site is automatically allocating gst into cgst and sgst.But as per place of supply rule its igst.How to overcome this while filing the Gstr1?

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4 Replies

CA ABHAY GUPTA (Practice) (3230 Points)
Replied 25 January 2022

Change the place of supply in GSTR1 from Kerala to Tamil Naidu..issue will get resolved.

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siva andhavarapu (ca final) (388 Points)
Replied 25 January 2022

Sir,it's not allowing to change place of supply.based on gstn its automatically taking kerala state.

prasad Nilugal ( GST Practitioner & Accounts ) (14801 Points)
Replied 25 January 2022

This is the case of Bill to ship to , Section 10(1)(b) of the IGST act 2017 , in this case place of Supply will be , Principal place of Business , That is Mr A Kerala , So in my opinion you have to charge CGST and SGST to Mr A and portal is showing correctly .
Goods were sent to Tamil Nadu on the direction of Mr A , so bill to Mr A and ship to Tamil Nadu site , So it's bill to ship to case . I hope Tamil Nadu site is not registered under GST.
This is my opinion , please take others opinion also .

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 25 January 2022

Yes correct Mr. Prasad , Actual Recepient is Mr. A , even though the material has been delivered to tamilnadu on instructions of Mr. A , it's deemed that it being received by actual Recepient 'A' , So on bill also you need to charge CGST/SGST as both supplier & Recepient are in same state.