Question

A person registered under GST in Dehredun(Uttarakhand) and doing business there wants to purchase a car from Chandigarh. If the person pays CGST/SGST by giving local address(Relative address) of Chadigarh and takes car to Dehrdun, whether he has to pay IGST also in Dehradun. Or, if he gives his Dehradun address and pays IGST, whether he has to generate E-way Bill. Is there any other implications under GST laws.

Answer

Case 1: If car is bought in the name of the relative.
CGST + UTGST will be levied since this is a sale within the same UT.
Now if the registered person uses this car (which was registered in the name of relative) then it is a deemed supply as per Para 2 of Schedule I if it is proved that the same is in course or furtherance of business. Therefore IGST will be levied on deemed supply ( right to use an asset ) between relative and the registered person.
Since Transfer of right to use without transfer of tittle in goods is a supply of Service as per Para 1(b) of Schedule II therefore no Eway bill is required.

Case 2: If car is bought in the name of the registered person.
IGST is levied since it is interstate supply.
Since tittle in goods is transferred therefore this is supply of Goods as per Para 1(a) of Schedule II
therefore e-way bill is required. (Reply dt.09/03/2019)