PLACE OF SUPPLY

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ASHUTOSH KUMAR CHITRAGUPTA

STUDENT (PURSUING CA)

28 Points Joined July 2011

A manufacturing co. having manufacturing units in Noida and sales office in Delhi and raises all sales bills from Delhi office only.
For sale, generally stock transferred to Delhi office and then dispatch to client's place, but in some cases sales bills are raised from Delhi sales office and goods dispatch to client's place directly from noida (manufacturing units).

Suggest the treatment of goods dispatch directly from Noida units to client's place according to the provisions of GST.

Replies (2)

CA Abhilash N

Chartered Accountant

265 Points Joined December 2018

In terms of section 10(1)(b) of IGST Act, where the goods are delivered by the supplier to a recipient 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 documents 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.

In the above case there are two transactions involved.

First, supply of goods from Noida unit to Delhi unit.

Second, supply of goods from Delhi unit to client.

Hence, Noida unit has to raise invoice stating "bill to" Delhi and "ship to" client and Delhi unit has to raise invoice to client.

E-way bill provisions to be complied.