Question ID : 36890

Place of supply

Supplier is engaged in supply of works contract services to government like construction of road, dam & canal etc. Supplier has GST registration in Andhra Pradesh as administrative office and has registration in Maharashtra where branch is situated. it has purchased plant & machinery from Dehli which is installed in Maharashtra. dehli supplier quoted GSTIN of Andhra Pradesh on invoice and shipping address to Maharashtra (with GSTIN number). Is the place of supply is Maharashtra where plant & machinery is installed or Andra Pradesh as in case of bill to and ship to transactions.

Answer ID : 76061

Billing is to be where the P&M would be used. The ITC can also be taken at maharastra where the tax would be paid. If Billed to ship to then tpo AP and then AP bills Maharastra branch which avails the credit.

Answer ID : 76065

Place of Supply is Maha, if the supply is made under 10(1)(a). And Place of Supply is AP, if the supply is made under 10(1)(b). It may be academic to debate Place of Supply at this time. If the supplier's invoice appears in 2A of Maha, then claim credit in Maha and account it in AP as 'financing purchase of equipment by Maha' in the inter-branch account. If the supplier's invoice appears in 2A of AP, then since goods are located in Maha, please issue another invoice from AP to Maha (stock transfer of CG) for the same value as per supplier's invoice and same HSN. AP will utilize the credit to pay tax leaving nil balance in AP. With this, credit will flow to Maha where it is installed and put to use. Date of invoice from AP will be 'today' and not back dated. There may be interest liability for delay in issuing invoice. But credit in Maha will be available against invoice from AP.

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