How to Determine the Place of Supply When there is No Movement of Goods
1. When supply does not involve movement of goods, the location of the goods at the time of delivery to the recipient is the place of supply.
For example: Rex Cars, whose registered place of business is Chennai, Tamil Nadu, opens a showroom in Mysore, Karnataka. They purchase a pre-installed generator at the premises from Rohan Generators in Mysore, Karnataka.
Location of supplier: Mysore, Karnataka
Place of supply: The supply of the generator does not require its movement. Hence, the place of supply is Mysore, Karnataka.
This is an intrastate supply, and the taxes applicable are CGST and SGST.
When supply does not involve movement of goods, the location of the goods at the time of delivery to the recipient is the place of supplyClick To Tweet
2. When the goods are assembled or installed at site, the place of assembly or installation is the place of supply
When the goods are assembled or installed at site, the place of assembly or installation is the place of supplyClick To TweetFor example: Rex Cars, whose registered place of business is Chennai, Tamil Nadu, opens a new branch in Hyderabad, Telangana. It purchases a lift, to be installed at the branch, from Ron Lifts, whose registered place of business is also Chennai, Tamil Nadu.
Location of supplier: Chennai, Tamil Nadu
Place of supply: The lift is assembled and installed at the premises of Rex Cars in Hyderabad, Telangana. Hence, place of supply is Hyderabad, Telangana.
This is an interstate supply, and the tax applicable is IGST.
3. When the goods are supplied on board a mode of conveyance, the location at which the goods are taken on board is the place of supply
When the goods are supplied on board a mode of conveyance, the location at which the goods are taken on board is the place of supplyClick To TweetFor example: A person purchases a power bank from the in-flight shopping catalogue on board a flight travelling from Kolkata to Hyderabad. The airlines has a registered place of business in Kolkata and the power bank is taken on board the flight in Kolkata.
Location of supplier: Kolkata, West Bengal
Place of supply: Kolkata, West Bengal
This is an intrastate supply, and the taxes applicable are CGST and SGST.
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Place of supply in case of ‘Bill-To-Ship-To’ transactions
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in this case india but i need to international export transcation under gst how recording
e.g A-is seller of japan B-is Purchases of India C-is Bayour from india to madgascar(foreign country)
term 1 Goods Trasn. A—————->Direct Send for——————–> C Address (Japan To Madgascar)
term 2 Invoice Sale A—————–B (India)Purchase Then——->India Issue Sales Invoice to——————> C Where Delivered Goods
Please guide me how recording in gst tally
Situation – 1
Service Supplier in Kerala with GST registration in Kerala State.
Service Receiver from Mumbai with GST registration in Maharashtra
State.has come to Kerala for his meeting.
Taken a Service from Kerala Supplier to do the meeting.
(The Actual supply has happened in Kerala but the Service Receiver
doesn’t have GST Registration in Kerala)
How do we raise the Invoice.
Invoice with IGST or
Invoice with CGST and SGST.
Situation – 2
Service Supplier in Kerala with GST registration in Kerala State,
Has gone to Mumbai for providing a service to a
Service Receiver with GST registration in Tamilnadu.
(The actual Supply has happened in Mumbai, but both the
Supplier & receiver doesn’t have GST registration in Maharashtra or doesn’t have a permanent address in Maharashtra )
How do we raise the Invoice.
Invoice with IGST or
Invoice with CGST and SGST.
Dear sir,
we have a customer having plant in Maharashtra and Haryana. He wants us to supply goods in maharashtra but billing address should be haryana. In this case IGST will be applicable or CGST & SGST please advise..
This depends on where you are located. If you are in Haryana, CGST + SGST will be applicable. If you are in a state other than Haryana, IGST will be applicable. We suggest you to refer our blog on this Place of supply
what will be the place of supply in these two cases:
1. when we receive an online order through a marketplace like ebay, flipkart etc. Will it be the place of registration of marketplace office or the delivery place of the buyer?
2. When we receive an online order from a customer through our own website and receive payment through a payment gateway? Will it be the place of registraion of payment gateway or the delivery address of customer?
Pls. note that Mr D has made the payment to Mr B (We)
Mr A Bill to Mr B (We) & Ship to Mr C
Now, Mr B Bill to Mr D & Ship to Mr C
** This is the case of Bill To Ship To where 4 parties is involved
A (GST Ludhiana registered ) received order of heavy machinery from foreign buyer and placed order of machinery to B (registered GST Ludhiana as manufacturer) with instructions of delivery of machinery directly to customs (CFS, Ludhiana). Here, A will not receive machinery in his warehouse. Please suggest billing procedure;
B (manufacturer) issue bill to A and
A issue bill to foreign buyer in same dates
When B issues bill to A, CGST + SGST will be charged. When A issues bill to foreign buyer, either IGST can be charged or export can be under LUT/Bond.
Well only 1st point in this article (1) is an example of good which does not involve movement, other examples are of goods which involve movement ! Removal is there, right?
I read that only the goods which are pre-fixed or pre-installed are termed as goods-not-involving-movement. Is that correct?
Thank you tally team
A person purchases a power bank from the in-flight shopping catalogue on board a flight travelling from Kolkata to Hyderabad. If person purchase power bank after flight land at Hyderabad? which GST apply then?
As the place of supply is the location where the power bank is taken on board, the place of supply will still remain Kolkata and the tax applicable will be CGST + SGST.
What is the place of supply if the supply term is Ex-works and shipped by buyer to another state. What are the taxes applicable?
What shall be place of supply in case of ‘A Supplementary Invoice’ raised purely against a price difference. There is not any physical movement of goods, just a price consideration.
Since the supplementary invoice is issued against an existing invoice, the place of supply will be same as the original invoice.
I am doing Medical Transcription services to US clients. Is GST applicable?
Kindly refer the following two links – https://goo.gl/fMdep2 (for final rates of goods) and https://goo.gl/Hi8bam (for final rates of services)
Sir,
if suppose we (A) the main Contractor is in CHHATTISGARH, we have got a project in MAHARASTRA (B) in this activity we have to Supply, Erection & Installation Work at MH. we have to procure some equipment from (C) MAHARASTRA and instructed them to supply the equipment in Maharastra. he will supply the equipment on our behalf. (i.e. we are in Chhattisgarh) now how the invoice will be?????
what tax is applicable for A from C and what tax will charge to B????
we the Buyer of equipment from MAHARASTRA & supplied to Maharastra. which tax is
We suggest you to refer our blog on this http://blogs.tallysolutions.com/place-of-supply-bill-to-ship-to-transactions/
Its very clear about CGST – SGST – IGST . Suppose a Consignee purchase some materials for consumption purpose GST will be impose & how Consignee will take advantage oF input credit ( CENVAT ) ? It is came to know that after return file of Consigneer that much of amount will be take as input credit. Its may run on probable method or what ? If it happen then return will wrong for Consignee. I want make understand the fact.
sir kindly tell us when GST will applicable.can we take CENVET credit.whenever we aren’t service provider & manufacture we are only registered as vat/cst dealer (trading pharmaceutical product)
GST is expected to be implemented from 1st July ’17. Regarding input credit on closing stock on transition to GST, we suggest you to refer our blog http://blogs.tallysolutions.com/input-credit-closing-stock-gst-transition/
What is the difference between cgst&sgst
We suggest you to refer our blog http://blogs.tallysolutions.com/how-gst-different-from-current-tax-structure/
Ist case where supply and installation is at Mysore and the same is considered as intrastate supply attracting (CGST& SGST). Who have file the return in Karnataka eithter Chennai Head office or Mysore Branch Office. As per GST manual only one return has to be filed for every PAN/GST registration number. If Chennai office files as intra-state then return is defective….isnt it? Please clarify….
It is good to learn about GST in a simple illustrations. On board transaction clarification is good
In the case of intra- state supply, whether CGST and SGST is applicable.If both are applicable
as you said in the article, what about input credit availing in this case
yes both CGST and SGST will be applicable, and the ITC i.e Input Tax Credit can be availed according to the ratio in which it is paid. however, Cross-utilisation is not allowed…meaning one can set-off the CGST and SGST liabilities with CGST and SGST credits respectively only.
Tally are doing wonderfully well by educating their readers with small but very important issues.
Haven’t they made it really complicated for businesses with so many rules to follow?
for the GST exempted category of dealers with less than 20 lac annual turnover, what will be the GST rates for the stocks held by such exempted dealers before GST?
The very first thing to ascertain in this case is to find out whether the stock was dutiable in the earlier regime. If yes, then Transitional Provisions of Model GST law takes care of that. Refund can be applied.
Hi Thapar,
http://blogs.tallysolutions.com/gst-composition-levy-explained/
Check th link it might help.
Regards
very clearly explained
Good article in a clear , lucid language easy, for comprehension, with practical examples
Sir, we are a trading unit registered in Maharashtra. We have a client in Kolkata. We supply them a material which is available in Kolkata itself, on our invoice of Maharashtra. What type of tax would it involve as there is no movement of good and place of supply is Kolkata?
If there is no movement of the goods, place of supply is Kolkata and location of supplier is Maharashtra. Hence, you will need to charge IGST on the invoice.
Good very good
Valuable inputs from team Tally reg. place of supply