E-WAY BILL, Goods and Services Tax - GST

[VINOD GATTANI]

HOW CAN WE "SALE IN TRANSIT" AFTER E-WAY BILL GENERATED ( JUST LIKE E-1 / E-2 SALES IN CST SYSTEM )

Posts / Replies

[Sadanand Bulbule]

Dear 

Plz refer the following:

PLACE OF SUPPLY OF GOODS OR SERVICES OR BOTH

Place of supply of goods other than supply of goods imported into, or exported from India.

Section 10 of the IGST Act, 2017

10. (1) The place of supply of goods, other than supply of goods imported into, or exported from India, shall be as under,––

(a) where the supply involves movement of goods, whether by the supplier or the recipient or by any other person, the place of supply of such goods shall be the location of the goods at the time at which the movement of goods terminates for delivery to the recipient;

(b) where the goods are delivered by the supplier to a recipient or any other person on the direction of a third person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to the goods or otherwise, it shall be deemed that the said third person has received the goods and the place of supply of such goods shall be the principal place of business of such person;

(c) where the supply does not involve movement of goods, whether by the supplier or the recipient, the place of supply shall be the location of such goods at the time of the delivery to the recipient;

¹[(ca) where the supply of goods is made to a person other than a registered person, the place of supply shall, notwithstanding anything contrary contained in clause (a) or clause (c), be the location as per the address of the said person recorded in the invoice issued in respect of the said supply and the location of the supplier where the address of the said person is not recorded in the invoice.

Explanation.—For the purposes of this clause, recording of the name of the State of the said person in the invoice shall be deemed to be the recording of the address of the said person;]

(d) where the goods are assembled or installed at site, the place of supply shall be the place of such installation or assembly;

(e) where the goods are supplied on board a conveyance, including a vessel, an aircraft, a train or a motor vehicle, the place of supply shall be the location at which such goods are taken on board.

(2) Where the place of supply of goods cannot be determined, the place of supply shall be determined in such manner as may be prescribed.

[Shilpi Jain]

If invoice is raised for the subsequent sale, issue EWB on the basis of that invoice for the transit sale.

[VINOD GATTANI]

UNDER WHICH SECTION I CAN TAKE DELIVERY IN TRANSIT AND SALE

( IN CST THERE WAS E-1/ E-2 SALES )

[VINOD GATTANI]

ANY COMMENTS BY ANYONE...?

[Sadanand Bulbule]

Typically transit sales are also understood as " Bill to-Ship to" transactions in the business circles. So to take care of such situations, there is a provision in the E-way bill, a box marked as "Transaction type". Select the "Bill to -Ship to" option and fill the necessary details therein.

Under the CST Act, 1956, E-1 & E-2 forms are prescribed to claim exemption of tax on second and subsequent sales in transit to prevent cascading effect. But such exemption is not available under the GST Act, 2017. On the other hand there is facility to avail ITC on each of such transactions.

[VINOD GATTANI]

" BILL TO SHIP TO " OPTION IS AVAILABLE ONLY BEFORE TRANSPORT THE GOODS

BUT HOW CAN WE TAKE DELIVERY OF GOODS IN BETWEEN TRANSPORTATION ( AFTER 24 HOURS ) BEFORE REACHING THE DESTINATION