Q. 46 X of Mumbai places purchase order for goods to Y of Mumbai . X instructs Y to deliver goods at different location in india on different dates to employees of X. now how E-way bill to be issued? when goods delivered at different states should Y levy igst or sgst/cgst? on issuing invoice?how invoice will be raised on completion of supply of goods? 

Ans. In the given case, if “X” is registered then “Y” shall raise an invoice in the name of “X” and the place of supply shall be the registered place of “X”.

As per facts, both “X” and “Y” are located in Mumbai, therefore the place of supply shall be Maharashtra for each supply to employees of “X” and hence “Y” shall charge CGST and SGST.

Invoice and E Way Bill will be issued on the basis of “Bill To” and “Ship To” model. In other words, while issuing the invoice to “X”, “Y” shall mention “X” as buyer i.e. bill to address and employee of X as consignee i.e. ship to address.

Q. 45 in the given above case what should be time of supply as because supply has to be made to different locations of india and the buyer has condition that only one tax invoice to be raised on completion of supplying the last consignment. 

Ans. As per Section 12(2) of the CGST Act, 2017, the time of supply of goods shall be the earlier of the following dates, namely:-

(a) the date of issue of invoice by the supplier or the last date on which he is required, under Section 31 (i.e. date of removal of goods where goods require movement or delivery of goods to the recipient in any other case), to issue the invoice with respect to the supply; or

(b) the date on which the supplier receives the payment with respect to the supply

There is no such specific criteria where you can make supplies for different locations and at different dates under cover of a single invoice. In other words, separate invoices should be issued for each supply of goods along with invoices.

Q. 44 An Indian Private Limited Company, incorporated under Companies Act,2013 hereinafter called ‘Indian Company' proposes to hold 100% shareholding of a Company incorporated in a foreign country under Companies Act of that country, called ‘Foreign Company'.

‘Foreign Company' will procure contract of accounting jobs of different clients of that country and/or other countries, and that cloud accounting will be carried out by ‘Indian Company' in India and ‘Indian Company' will raise invoice upon ‘Foreign Company' with specific margin, as agreed upon. The payments of the aforesaid invoices will be received by ‘Indian Company' in convertible foreign exchange from the ‘Foreign Company'.

‘Foreign Company' will raise invoices upon its local clients and/or foreign clients, whose accounting job is contracted for, as per contracted rates between ‘Foreign Company' and local clients of that country and/or other countries.

Under these facts,'Whether Supply of services by ‘Indian Company' to ‘Foreign Company' is covered under section 2(6) of the IGST Act i.e. it will amount to Export of Services, in compliance to circular no.161/17/2021-GST.

It is hereby requested to enlighten us whether under the above said facts it will be a case of exempted export of services. 

Ans. In the given case, Indian Company and Foreign Company both are separate persons for the purpose of Export of Services. The given circular has in itself clarifies the same situation wherein subsidiary companies/holding companies not to be treated as mere establishment of a distinct person.

Therefore, if all other conditions of Export of Services are satisfied in that case the given situation would qualify as Export of Services and in compliance with the Circular No. 161/17/2021-GST. Further, you can do Export of Services without payment of duty if LUT has been obtained or with payment of duty without LUT.