Question

One of my client is a garment manufacturer at ludhiana (Punjab) . He wants to send the garments to Zirak pur also in Punjab for exhibition and sale from that place. Now my question is that, how ca n we send the garments to that place and sale from that place. can we show that place as additional place of business after amending the registration. Kindly let me have your expert opinion in the matter.

Answer

Facts of the Case: A per registered in Ludhiana (Punjab) wants to make a sale from within Punjab but from an exhibition that is a place other than the registered POB.

Law applied: If a taxable supply is made from a place other than the registered POB the same shall be registered and treated as additional POB.

Interpretation: The 2 cases shall have following implications :
Case 1: Other place is registered as additional POB.
1. Movement from factory to other place shall be made against challan since this is not a taxable supply.
2. When the goods are finally sold from the other place then invoice shall be raised. Invoice shall show the additional POB as the place from where (Zirak pur) the goods have been sent out for delivery.
3. Corresponding e-Way Bill shall be drawn.

Case 2: Other place is not registered as additional POB.
1. Movement from factory to other place shall be made against challan since this is not a taxable supply.
2. When the goods are finally sold from the other place then invoice shall be raised. Invoice shall show the factory (Ludhiana) as the place from where the goods were originally sent out for delivery.
3. Corresponding e-Way Bill shall be drawn.

Now in Case 2, difficulty arises when after the final sale from exhibition goods are caught and checked in between Ludhiana and Zirak Pur because no supporting document can be found. This happens because the invoice supports movement only from Ludhiana to Place of delivery.

Conclusion: To avoid the above difficulty, it is advisable to register the place of exhibition as additional POB. (Reply dt.18/03/2019)