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Place of Supply

Kunal Bhatt (Student CA Final ) (52 Points)

18 September 2018

What will be the place of Supply in case of assessee selling bikes having registered place of business at gurgaon, haryana

a) B2B: to other registered persons
b) B2C: to normal customers

in both cases the delivery is given at showroom in gurgaon

what is levied IGST or CGST/SGST

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13 Replies

Vinod Babu (24191 Points)
Replied 18 September 2018

As the place of supply is intra state then CGST and SGST applicable for both B2B and B2C.

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 18 September 2018

The dealer will be charge CGST and SGST as Intra State Supply...

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 18 September 2018

As per section 10(1)(b)
movement of goods terminates for delivery to the recipient;

So in both case the supply terminates at showroom hence CGST/SGST will be charge

Note : If the Bike is deliver on transport to customer in other state IGST will be applicable ,.( as the supply terminates when recepient reced the delivery )

Vinod Babu (24191 Points)
Replied 18 September 2018

IGST will be applicable when goods movement outside your state.

Kunal Bhatt (Student CA Final ) (52 Points)
Replied 18 September 2018

Is IGST isn't applicable since the invoice is of more than 50,000/- and it requires name and address of buyers on it??

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 18 September 2018

dear kunal ji

TRADER IS SELLING BIKE/MOTOR CYCLE,... WITHOUT ADDRESS & NAME , HOW ITS POSSIBLE ......

Vinod Babu (24191 Points)
Replied 18 September 2018

As per your query CGST and SGST applicable.

Kunal Bhatt (Student CA Final ) (52 Points)
Replied 18 September 2018

No Pankaj ji I'm saying he's selling bikes with name & address and address of buyers are of delhi etc. I'm just asking whether IGST applicable or not?

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 18 September 2018

@ K.BHATT JI ,.. I MISREAD YOUR QUERY

IF HE HAS DELIVER THE BIKE TO HIM ON SHOWROOM , THE DELHI BASED CUSTOMER AS PER SECTION 10(1)(B), THE SUPPLY TERMINATES ON SHOWROOM THE CUSTOMER HAS RECED THE BIKE IN SHOWROOM (GURGAON) THEN CGST/SGST WILL APPLICABLE.

AND

IF DEALER DELIVER HIM TO HIS DELHI ADDRESS THEN IGST WILL BE CHARGE AS THE SUPPLY TERMINATE IN DELHI , POS WILL BE DELHI

Kunal Bhatt (Student CA Final ) (52 Points)
Replied 18 September 2018

Yes pankaj ji I'm partially agreeing with you
but if that's the case then why invoicing provisions required Name & Address of buyers in case where value of Supply is more than 50,000/- (Rule-46)
Isn't it related to place of Supply in some sense??

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 18 September 2018

RULE 46, STATES THE RULE FOR INVOCING & SECTION 10 TO 13 IGST ACT SAYS ABOUT POS

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 18 September 2018

AS PER SECTION 12(3) IGST ACT : HOTEL WILL NEVER CHARGE IGST , EVEN THOUGH THE CUSTOMER IS FROM OTHER STATE. THEY WILL MAKE THE BILL TO HIS ADDRESS BUT CHARGE CGST/SGST

POS IS DECIDED ON : 1. PO SUPPLIER

2. PO RECEPIENT

3. NATURE OF SERVICE