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TAX on supplies to other state dealer

05 February 2019

A dealer in Maharashtra has to supply goods to a dealer regd in Karnataka..That dealer is receiving goods in maharashtra and will use in Maharashtra...As per rule IGST is to be charged but the purchasing dealer is asking for levy of CGST and SGST...can the selling dealer do that...

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5 Replies

CA Akshay Hiregange (Partner - Audit & Assistance) (4515 Points)
Replied 05 February 2019

Dear Prem,

IGST is not applicable. The place of supply is dependent on 2 aspects - the location of the supplier and the place of supply as per section 10 of IGST (for goods).

Section 10 - Where goods terminate for delivery, i.e. Maharashtra. As supplier and place of supply is same state, CGST & SGST applicable.

Note: Karnataka dealer, cannot claim such credit (in KA) unless he is also registered in Maharastra.

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Prem Kewalramani (292 Points)
Replied 05 February 2019

if we charge CGST and SGST then whether it will be uploaded in GSTR 1 in B2B..showing other state regn NUMBER and place of supply maharashtra..

CA Akshay Hiregange (Partner - Audit & Assistance) (4515 Points)
Replied 05 February 2019

Yes, but you need to manually change the Place of Supply to Maharastra while filing GSTR-1.

pritesh (CA Final student) (7101 Points)
Replied 05 February 2019

Whether this is 3 party transaction Case? thn the piace of SUPPLY shall be the the principal place of business of 3td person.
refer Link below.

https://cleartax.in/s/place-of-supply-of-goods