Revenue neutral transaction for the state., Goods and Services Tax - GST

[DKRajarshi&Co CharteredAccountants]

The company has charge IGST on customer in Gujrat state from invoice raised from Maharashtra state. The company is having registration in Gujrat state but not raising any invoices from Gujrat state for internal controls. As the customer is in Gujrat state the 50% of IGST goes to Gujrat state and 50% goes to central Government. Can Gujrat sate raised any objection under GST as for Gujrat state transaction is revenue neutral.

Posts / Replies

[KASTURI SETHI]

In my view, no objection can be raised inasmuch as both persons registered separately in Gujrat State and Maharashtra State are distinct persons. Also to be ensured that procedure laid down in Section 25 of CGST Act is be followed properly. Section 25 (4) &(5) and definition of place of business under Section 2(85) are to be taken care of.

[CASusheel Gupta]

I agree with Kasturi Sir.

In addition also ascertain from where actually supply is being made.

If supply is being made from Gujrat but billing is being done from Maharashtra, it is incorrect.

CA Susheel Gupta

9811004443

[KASTURI SETHI]

Sh.Sushil Gupta C.A., Sir, Thanks for enrichment of my knowledge via your additional information.