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Inter state sale under gst

Rudrayani Shedjale (Assistant Accountant) (751 Points)

24 April 2019

We are into civil work contract.

we have received a project (site for construction) in Bhopal.

so do we need to get registered under GST in Madhya Pradesh (M.P.) state?

please advise.

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16 Replies

Rudrayani Shedjale (Assistant Accountant) (751 Points)
Replied 24 April 2019

we are already registered in Maharashtra under GST.

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Hitesh rawal (402 Points)
Replied 24 April 2019

No no need of any registration you can carry out your billing with IGST from maharasthra.

Rudrayani Shedjale (Assistant Accountant) (751 Points)
Replied 24 April 2019

just we need to add IGST instead of CGST & SGST?

but IGST liability can be settled against CGST & SGST input?

Padmanathan Kv (2127 Points)
Replied 24 April 2019

I have a slight difference of opinion due to a practical issue. If you are purchasing materials locally from M.P, you maybe given an CGST and SGST invoice. Since your Registration is in Maharashtra, you may not be able to claim credit.

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Rudrayani Shedjale (Assistant Accountant) (751 Points)
Replied 24 April 2019

yes & it is not convenient to purchase the material from Maharashtra & incur high cost towards transportation up to M.P.

instead if we take registration in M.P. we can purchase & make sale from that state itself.

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Rudrayani Shedjale (Assistant Accountant) (751 Points)
Replied 24 April 2019

in tally can i maintain both state purchase under same company?

bank is the same for both state but gst registration number will be different

Padmanathan Kv (2127 Points)
Replied 24 April 2019

I would suggest to open a separate bank account in M.P for sake of convenience and maintain project wise accounts and finally consolidate for IT purpose at the end of FY.

Rudrayani Shedjale (Assistant Accountant) (751 Points)
Replied 24 April 2019

should i maintain cost center wise accounting in a single company or create different company ?

Padmanathan Kv (2127 Points)
Replied 24 April 2019

both alternatives are good either cost centre or separate data for each project. Wont make much of difference i guess

Rudrayani Shedjale (Assistant Accountant) (751 Points)
Replied 24 April 2019

but if multiple gst registration numbers are there for same company i wont be able to file gst returns from tally itself i think

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Rudrayani Shedjale (Assistant Accountant) (751 Points)
Replied 25 April 2019

if we want to transfer goods (that is left at site) from our site in Maharashtra to the other site (different branch having different GSTIN) in M.P. i.e.interstate transfer of goods, we need to issue e-way bill? actually multiple goods are there that we had purchased from other suppliers for construction which need to be transferred to new site in M.P. for construction only.so how to determine the value of consignment? while creating e-way bill should i register with GSTIN of Maharahtra or M.P.? should i treat it as sell & pay the gst?

Padmanathan Kv (2127 Points)
Replied 25 April 2019

As per schedule I, It should be treated as supply and valuation should be as per rule 28. for sending various goods you should issue invoice as well we e-way bill.

Rudrayani Shedjale (Assistant Accountant) (751 Points)
Replied 25 April 2019

so under gst it will be like sale from Maharashtra to M.P. with IGST

& can i take credit of the same in M.P.?

Rudrayani Shedjale (Assistant Accountant) (751 Points)
Replied 25 April 2019

in tax invoice i should mention same company name with M.P. GSTIN? means seller name & buyer name will be same in invoice but different GSTIN & different addresses