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SME Chatroom: In case of inter-state supply, supplier should charge IGST

The e-way bill provisions have been deferred for now but as the law stands now, you are the recipient of goods but not the consignee

T N C Rajagopalan 

Illustration: Ajay Mohanty
Illustration: Ajay Mohanty

I am a registered dealer at Kolkata (‘A’) and have purchased goods from a registered dealer of Mumbai (‘B’) for the purpose of re-sale to a trader in Kolkata (‘C’). Therefore, I have directed the Mumbai dealer to despatch and deliver the goods to ‘C’. My queries are: (1) Can I issue the way bill in my name? If yes, can I write the name of the purchaser (‘C’) in the way bill? (2) Which should be charged by the seller, i.e., ‘B’? (3) Which should I charge from the Kolkata trader (‘C’) and when should I issue the invoice on ‘C’ - before or after delivery of goods?

The e-way bill provisions have been deferred for now but as the law stands now, you are the recipient of goods but not the consignee and so, the supplier (B) should generate the e-way bill giving your He should charge on the inter-state supply. You should raise a CGST plus SGST invoice on (C) before or at the time you deliver or make available the goods to him. Please see Sections 2(93)(a) and 31(1)(b) of the CGST Act, 2017, Rules 138(1) and (2) of CGST Rules, 2017 and Sections 7(1) and (3) and 8(1) and (2) of the Act, 2017.  

I have started a new business. One of my suppliers refuses to supply me because I do not have a number. I am not refusing to pay the But, is he right in insisting on my getting registered? 

There is no legal basis for your supplier to insist that you must be registered, unless you are required to pay the on reverse charge basis. Please see Section 24(iii) of CGST Act, 2017.  

Are we are required to pay on our residential apartment for which we have formed a private limited company by all 23 flat-owners who are all members of the company so as to receive services?

It appears from your query that the company that you have formed gives services like providing security service for the residential complex, maintenance or upkeep of common areas and common facilities like lift, water sump, health and fitness centre, swimming pool, payment of electricity bill for the common area and lift, etc. This company is an independent legal person. The shareholders are independent legal persons. So, the services given by the company will attract The exemption at S No. 77 of notification 12/2012-Central (Rate) dated June 28, 2017 will not be available, as the company is not an unincorporated body or a non- profit entity registered under any law for the time being in force. 

We represent foreign manufacturers to sell their product in India, for which we get a commission in US dollars through Indian Bank. Are we liable to pay

Your service is that of “intermediary” and place of supply is So, you have to pay  Please see Section 2 (13) and 8 (b) of the Act, 2017.

First Published: Mon, November 06 2017. 16:54 IST
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