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Query related to place of supply

23 April 2021

If supplier is registered in Delhi and goods send to the WB on the instruction of buyer of goods who is also located in Delhi, then what will be the place of supply in this case? please any one clarify.

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14 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 23 April 2021

West Bengal will be place of supply

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abhishek jha (53 Points)
Replied 23 April 2021

But in case where goods are transfered on instruction of third person location of third person is considered for place of supply and in this case location of third person in delhi

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 23 April 2021

Yes yes you are right Delhi will be place of supply, it was a mistake

CA Altamush Zafar (GST Consultant) (15971 Points)
Replied 23 April 2021

It will be Delhi

1 Like

Deepak Kumar (791 Points)
Replied 23 April 2021

This case is Bill to Ship to model and this case place of supply is Delhi

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abhishek jha (53 Points)
Replied 23 April 2021

I am not understand the bill to ship to model I was read that when goods are move on the instructions of third party then location of third party will be treated as place of supply please explain

Deepak Kumar (791 Points)
Replied 24 April 2021

Bill to ship to means first party issued invoice to second (Bill to name ia second party ) and instruction of 2nd party you are delevired to goods another party means third party (Ship to name is third party ) so you can charge CGST and SGST and place of supply is delhi

Example Under :Bill To Ship To” model of supply, there are three persons involved in a transaction: 'A' is the person who has ordered 'B' to send goods directly to 'C' 'B' is the person who is sending goods directly to 'C' on behalf of 'A' 'C' is the recipient of goods. Briefly understand please Read section 10(1)(b) of IGST Act

CA Puja Sharma (Chartered Accountant) (5010 Points)
Replied 24 April 2021

Ye POS will be Delhi - the location of the person who gave the instruction.

abhishek jha (53 Points)
Replied 24 April 2021

Here supplier and recipient of goods are located in delhi but destination (where goods are consumed) is WB so here the SG of WB can file objection because there are a loss of revenue to the SG of WB, the amount of gst credited to the state of delhi and CG.

mohan sehgal (Chief Executive/Managing Partner) (117 Points)
Replied 26 April 2021

No.... the Invoice is to be raised on Bill To/Ship To Model by charging SGST/and CGST Bill to Delhi registered dealer and ship to W Bengal dealer..

There is no confusion...

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abhishek jha (53 Points)
Replied 26 April 2021

Suppose a non registered person (normal consumer)reside in WB and order to the dealer of WB(who is registerd)to send the goods to delhi then in such case invoice is made in the name of consumer(who reside in WB) and sgst and cgst will be charged but in substance the goods were consumed in delhi, then every one doing this and no revenue generated to the delhi.

mohan sehgal (Chief Executive/Managing Partner) (117 Points)
Replied 26 April 2021

A non registered dealer cannot send goods INTER STATE...

It means, your unregistered dealer in WB cannot send goods to DELHI...as the goods are going to shipped on order of the Buyer in West Bengal only...and he is UNREGISTERED.....

THANKS

abhishek jha (53 Points)
Replied 26 April 2021

Here daler of goods(supplier) is registered person and buyer of goods(recipient)is unregistered and godds send by the supplier to delhi on the instruction of the buyer.
for sending the goods from one state to another(not sale) is it necessary to regisrer under GST
because here first of all sale held in WB and thereafter goods send to the delhi.

mohan sehgal (Chief Executive/Managing Partner) (117 Points)
Replied 26 April 2021

The goods are to be sent inter state on the instr-ructions of the buyer..ultimately the buyer in WB is the actual supplier..it is SALE.in all respect....