Transportation of goods supplied under gst

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Teerth

CA Final

253 Points Joined October 2012

My query for GST goes as follows: There are 3 parties involved in supply of goods say A from Delhi, B from Maharashtra, and C from Punjab. All the parties are residing in different states. Now B has ordered goods from A and they are to be supplied to C from A. B has ordered A to directly supply goods to C without intervening B in process. However billing will be done in the name of B from A and B will further prepare bill to C.

Kindly let me know how exactly the process will be followed and what practically all three parties have to be follow the process including preparation of Form 403 for supply of goods from the destination of A to C?

Replies (15)

Anshu Goenka

123 Points Joined August 2017

Your query is related to section 10(1)(b) of IGST act.
In this case place of supply will be place of B i.e, maharashtra
A will charge IGST on his bill to B.
Further B will bill to C and charge IGST on it

Dip Narayan

Deputy Manager

783 Points Joined May 2011

Form 403 requires for supply of goods to GUJRAT. As per the case cited by you. I think form 403 is not required.

Teerth

CA Final

253 Points Joined October 2012

@ Anshu Goenka. Okay i understand that. The question is what procedure do they (all three) need to follow so that goods are supplied direct from A to C without entering the state of B.

Teerth

CA Final

253 Points Joined October 2012

@ Dip Narayan. Right sir. So what exactly they (all of them) should do/practically perform to supply goods from the State of A to State of C without intervening state of B?

Dip Narayan

Deputy Manager

783 Points Joined May 2011

See Mr. Teerth.As per your example A is the supplier B is the buyer i.e. bill to party and C is the Ship toParty. Mr.Goenka has rightly said the determination will be as per section 10(1)(b). GST will be determined on bill to ship to model. As per your examaple A is at Delhi (that is goods will be supplied from Delhi) and Place of supply will be Maharashtra , though the material is supplied to C (i.e Punjab) but as bill to party (i.e B) is at Maharashtra therefore place of supply will be Maharashtra.and IGST will be applied.

Now in your example if the location of B (i.e the bill to party ) is at Delhi and C is Punjab then though the material is supplied at Punjab but as the the bill to party at Delhi hence CGST/UTGST will be apllied as per section 10(1)(b) it will be treated as deemed supply at Delhi.

Anshu Goenka

123 Points Joined August 2017

Well explained @ Dip Narayan

Teerth

CA Final

253 Points Joined October 2012

Okay i get that.. @ Dip Narayan and AnshuGoenka..

So if A puts the name of B in its bill and place of supply as Maharastra and puts the shipment address to Punjab whereas B directly couriers its Bill to C as per Section 10(1)b so will the checkpost at the border allow the goods to supply the goods from Delhi to Punjab directly or will there be any issues standing on transportation of goods??

Dip Narayan

Deputy Manager

783 Points Joined May 2011

There should not be any issue at the border.

Teerth

CA Final

253 Points Joined October 2012

Okay , I am cleared completely.

Thank you so much @ Dip Narayan and @ Anshu Goenka. Thanks alot for your help.

rocky

accountant

953 Points Joined January 2014

another safe option -

A WILL BILL TO B

B WILL BILL TO C & SEND THIS BILL BY MAIL TO A

AND A WILL HAND OVER BOTH INVOICES TO TRANSPORTER.

Teerth

CA Final

253 Points Joined October 2012

Okay. Thanks so much @ rocky.

Dip Narayan

Deputy Manager

783 Points Joined May 2011

If there is movement of goods then what will be the vehicle details ? For both the cases

Teerth

CA Final

253 Points Joined October 2012

Sorry for Late reply @ Dip Narayan. Transportation Vehicle will be GTA. A transportation agency who regularly transports goods from one place to another.