hi friends
Supplier from AP
Good + Install. AP
I am reg. KA
As per sec 10(1)d.
POS - AP ; LOS - AP. Intra state.
My question is when at the time of raising invoice by supplier I need to give my reg. No. In that it show I am from KA
Then how can supplier charge cgst and sgst. (In invoice it was showing 2 diff states GST no.)
4 Replies
Kuldeep Malik
(137 Points)
Replied 12 September 2020
Hey rajnikanth, in this case supplier is supplying and install good in same state, hence he charge correct cgst and sgct irrespective of your place of registration. gst is comsumption based tax and goods were consumed in same state so no question of IGST is arised. you cant claim ITC on such supply
Shivam RC
(Student)
(23683 Points)
Replied 12 September 2020
It would be treated as an "INTRA-STATE SUPPLY" by virtue of Section 10(1) clause (d). The Place of Supply where the supply involves assembly / installation of goods, will be the place of installation. Accordingly,
Location of Supplier = Andhra Pradesh.
Place of Supply = Location where goods are being installed i.e. Andhra Pradesh.
Hence Nature of Supply = INTRA STATE SUPPLY. So the supplier should raise invoice in your name ( mentioning your GSTIN ) and charge CGST + AP SGST.
The only problem will be that you will not be able to claim the ITC of this Invoice since you are registered in a different state. It is not allowed as per Law. As correctly pointed out by Mr. Kuldeep, GST is a "DESTINATION BASED CONSUMPTION TAX" that means that the tax will accrue to the state where goods / services are being ultimately consumed.
Always remember that the supplier needs to charge GST as per the Place of Supply Provision. Even if the invoice shows 2 different states, GST will be charged in accordance of Place of Supply Provision.
Hope you understood Mr. Rajanikanth Sir...
Regards,
Shivam RC.
Location of Supplier = Andhra Pradesh.
Place of Supply = Location where goods are being installed i.e. Andhra Pradesh.
Hence Nature of Supply = INTRA STATE SUPPLY. So the supplier should raise invoice in your name ( mentioning your GSTIN ) and charge CGST + AP SGST.
The only problem will be that you will not be able to claim the ITC of this Invoice since you are registered in a different state. It is not allowed as per Law. As correctly pointed out by Mr. Kuldeep, GST is a "DESTINATION BASED CONSUMPTION TAX" that means that the tax will accrue to the state where goods / services are being ultimately consumed.
Always remember that the supplier needs to charge GST as per the Place of Supply Provision. Even if the invoice shows 2 different states, GST will be charged in accordance of Place of Supply Provision.
Hope you understood Mr. Rajanikanth Sir...
Regards,
Shivam RC.
Pankhuri Agrawal
(Chartered Accountant)
(412 Points)
Replied 13 September 2020
The supplier has charged correctly as CGST & SGST are charged in case of intra state supply.
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