Question 29:

Our factory is in Gujrat state and our Register office in Mumbai-Maharashtra. The GST Numbesr are different.
 We are the  Manufacturer Exporter also we purchase  the goods from other manufacturer (which we can  not manufacture the goods)  and export. Before GST our practice was like this. We  purchase the goods from other multiple manufacturer ask them to dispatch the goods through the transport. The all goods comes from transport and from transport we collect the goods including goods of our factory and club all the goods and then  take it to port / custom . 
 Now from all  manufacturer  we collect the goods at our factory and from factory we dispatch the goods to port under single invoice.
Here I want to know can we bring the material through transport directly to port. Invoicing at factory and tacking the credit of ITC AT FACTORY AND DELIVERY OF GOODS AT MUMBAI PORT ?

Answer

Section 10(1) (b) of IGST Act provides facility of sending a material to destination without bringing it to the Place of receiver. In Central excise act the credit was available only when goods were received in factory because the tax was on manufacture & registration was premises based. But GST is on all type of Supply and not restricted to one premises therefore we are of the opinion that material can be sent directly to the port. 
In this case according to Section 10(1)(b) Place of supply is the Place of actual buyer i.e Mumbai Maharashtra on whose direction goods are sent directly to port and CGST & SGST or IGST on invoices to factory will be charge accordingly. Yes, you are also eligible for credit on the same.

For your Reference Section 10(1) (b) of IGST is reproduced below:-
Section 10: Place of supply of goods other than supply of goods imported into, or exported from India 
(1) The place of supply of goods, other than supply of goods imported into, or exported from India, shall be as under
(b) 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;
(REPLY dt. 01-03-2018)