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IGST or CGST AND SGST

Sanjay Thakur (19 Points)

31 December 2017

I have raised the bill to inter state but material supplied in intrastate. can I charge him IGST or CGST and SGST ?

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26 Replies

CA Piyush Shivani (...) (137 Points)
Replied 31 December 2017

cgst and sgst

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Dixit (CA Final) (2405 Points)
Replied 01 January 2018

In your case Place of supply is out of state so IGST will be charged.. Because bill to party is out of state... Though ship to party within the state it can not be say intra state supply...
For further clarification see IGST rules

Divakar (Student CA Final ) (11857 Points)
Replied 01 January 2018

@ Dixit...please mention rule no... Of which u r talking about??

Sanjay Thakur (19 Points)
Replied 01 January 2018

sir. read my question carefully, bill raised interstate supply but material supply in within the state. caln I charge IGST or CGST AND SGST?

Dixit (CA Final) (2405 Points)
Replied 01 January 2018

Yes see Section 5(2A) of IGST, there are said that if supplier "whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to the goods or otherwise, it shall be deemed the said third person has received the goods and the place of supply of such goods shall be the principal place of business of such person"
So in your case there are delivery instruction made by customer that deliver to within the state and all the documents will be issued by customer only, and customer is sitting in inter state. This is clearly bill to ship to transaction. So, you raised invoice on the name of inter state customer. That's why you should charged IGST and mentioned in your bill "Bill to party" and "ship to party".

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Divakar (Student CA Final ) (11857 Points)
Replied 01 January 2018

Yes Dixit is right.... If u hv made supply of goods on the instructions of ur buyer then charge IGST..

Mondira Saha (GST) (3925 Points)
Replied 01 January 2018

if you have proof that you supply is intrastate than you can charge cgst and sgst .... but some party not accept this they said that provide igst bill for that ... you are free to charge igst or cgst+ sgst(if you have proof like delivery challan )

Mondira Saha (GST) (3925 Points)
Replied 01 January 2018

this case is confusion because if you charge cgst + sgst then your party not claim this sgst (cause another state sgst he cant claim ... ) ....

Divakar (Student CA Final ) (11857 Points)
Replied 01 January 2018

@ Mondira...he can't charge cgst and sgst in bill... Plz refer section 5(2A) OF IGST act in this case place of supply is principal place of buyer

Dip Narayan (Deputy Manager) (767 Points)
Replied 01 January 2018

Section 10(1)(b) of IGST act will be applicable here, As per this section imposition of GST will be Bill to Ship to model. If the supplier and the bill to party of the receipent are in the same state then CGST/SGST will be applicable even if the Ship to Party is in a different state.

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Divakar (Student CA Final ) (11857 Points)
Replied 02 January 2018

Hlw @ Dip how section 10 applicable here.. Here bill to party is another state

Dip Narayan (Deputy Manager) (767 Points)
Replied 02 January 2018

Section 10 (1) (b) is stating as follows:- "where the goods are delivered by the supplier to a receipient or any other person on the direction of a third person whether acting as an agent or otherwise , before or during movement of goods , either by way of transfer of docuements of title to the goods or otherwise, it shall be deemed that the said third person has received the goods and the place of supply of such goods shall be the principal place of business of such person.".

@ Mr, Divakar, if bill to party is in a differnt state then IGST will be applicable even if the state of supplier and the ship to party are in the same state.

Divakar (Student CA Final ) (11857 Points)
Replied 02 January 2018

The queriest is asking for bill to inter state... Thats what we r saying charge igst

Mondira Saha (GST) (3925 Points)
Replied 02 January 2018

there is lots of confusion in Place of supply ....
cause in rule mention place of supply is the principle place of business

and another if you see FAQ by gst goi he says if the movement of goods is intrastate then it will attract cgst and sgst

in my opinion charge IGST cause if you charge sgst on it your buyer not claim ITC on it ... cause only same state sgst can claim ( as by FAQ by gst goi ) ... if you charge igst he can claim easily

POS is not clear in gst till now ....