Shailesh Prabhu (Student CA IPC / IPCC) (53 Points)
26 June 2020
CA Akshay Hiregange
(Partner - Audit & Assistance)
(4615 Points)
Replied 26 June 2020
Considering that service invoice by the dealers are raised separately for goods portion and service portion - the place of supply has to be seen separately for both.
For services:
Where the customer is registered - Location of GSTIN regd. (in this case Gujarat)
Where customer is not registered - address as available (in this case Gujarat)
For goods:
Where there is movement of goods (irrespective of the person moving), the place where delivery terminates, i.e. car will be taken back to Gujarat - Place of supply is - Gujarat
Where there is no movement of goods (considering that supply ends at service station) - where goods are handed over - place of supply is Maharashtra.
But th intention of the GST law is a destination based tax, therefore, suggest to include a terms and conditions that for the purpose of GST delivery terminates at the location as per address or GSTIN provided.
This will help ensure IGST is charged on the transaction and the customer may be able to claim ITC (subject to eligibility under Section 17(5)(aa)
Shailesh Prabhu
(Student CA IPC / IPCC)
(53 Points)
Replied 26 June 2020
Garima gupta
(41 Points)
Replied 26 June 2020
In the given case, if the value of goods and services are shown separately then it will be treated as two separate supplies:
1. Supply of Goods
2. Supply of services
Place of supply for Goods
In the given case the goods which have been used for repair of car are in the nature of movable goods as they can be trasnferred from one place to another;
Further, as per Section 10(1)(a) of the IGST Act, 2020 where the supply involves movement of goods the place of supply of such goods shall be the location of the goods at the time at which the movement of goods terminates for delivery to the recipient;
In this case as the client has himself brought the car in Mumbai, therefore the delivery of goods terminates at Mumbai and place of supply will be Mumbai for the supply of goods;
Place of supply of Services
As per section 12 of the IGST Act, 2017 the place of supply of services made to registered person shall be location of the registered person.
In the given case, as the services has been supplied to a person registered in Gujarat. Therefore, the place of supply for services will be Gujarat.
Shubham Bhardwaj
(Student)
(51 Points)
Replied 29 September 2020
CA Akshay Hiregange
(Partner - Audit & Assistance)
(4615 Points)
Replied 29 September 2020
The logical assumption of supply would not hold good. It depends where delivery terminates in a case where movement is caused by any person. Therefore suggestion give to ensure credit chain is not broken
Shubham Bhardwaj
(Student)
(51 Points)
Replied 29 September 2020
| Originally posted by : CA Akshay Hiregange | ||
 |
The logical assumption of supply would not hold good. It depends where delivery terminates in a case where movement is caused by any person. Therefore suggestion give to ensure credit chain is not broken |  |
Akshay Sir, it means i should charge IGST on both goods and services so that other person can take credit....but sir why do i need to think for other person...i only need to think of GST law.
Sir, Can you please give me your email ID. Just want to discuss more on this.
CA Akshay Hiregange
(Partner - Audit & Assistance)
(4615 Points)
Replied 07 October 2020
akshay @ hiregange.com.
I am not saying think from perspective of the customer. Think from intention of the law. Also, his address/GSTIN would be of another State so it is safe to say delivery would terminate there.
There is no malafide/fraud intention, and discharging IGST is in accordance with law. Why not do the same?
25 Hours GST Scrutiny of Return and Notice Handling(With Recording)
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