Question9:

We are registered under GSTN as a Manufacturer and Service Provider of Textiles Articles. Sometimes our clients located at Out Side Gujarat (inter State) are procuring goods from us and asking us to make delivery of the same( consignee) to their job Worker premises at Ahmadabad and in some cases they are arranging transportation from our factory gate to their Job worker located in Ahmadabad Gujarat . Accordingly we are handing over the delivery of our buyer located at Delhi to its Job worker within Gujarat . As per our belief an understanding , the place of supply in our case is Ahmadabad /Gujarat only hence we are charging SGST & CGST to our interstate buyer .

Answer:

On the advice of your buyer, you are sending your goods to his job worker located in your State itself. Buyer being located in a State other than your State, you are supposed to charge IGST as it amounts to inter-state supply. Arranging of transportation by you does not change status of type of supply. Relevant legal provisions regarding place of supply in your case are contained in Section 10 1)(b) of IGST Act, 2017 which is reproduced below;
"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"
According to the above mentioned legal provisions place of supply of goods will be the principle place of business of the person who has given directions to the supplier to deliver the goods at the place of job worker for doing job work. (Reply dt.27/11/2017)