GST Implications for NGOs on transfer of goods outside state

Posted on November 19, 2018 by SRRF

Dear Sir/ Madam,

PO has been raised by an NGO for printing documents to a printing agency and in this PO the shipment address is mentioned outside Delhi and the billing address is mentioned as Delhi because vendor belongs to Delhi. The vendor himself couriers the consignment on behalf of NGO outside Delhi. PO states that the freight charges will be paid to Printing Agency as per actual.

1. Can printing agency raise the freight bill to NGO? Or is there any other way out?
2. Is it required to generate e-way bill by the printing Agency to dispatch the materials?
3. Is there any GST implication? (Let me clear that this shipment is not for furtherance of business)
4. Will it be GST bill or IGST bill?
5. on POD printing agency can write the name of NGO as a consignor.

Looking forward to hearing from you.

thank you.

Ravi Shankar

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One Response to GST Implications for NGOs on transfer of goods outside state

  1. Deepak Bansal says:
    November 26, 2018 at 6:38 am

    PO has been raised by an NGO for printing documents to a printing agency and in this PO the shipment address is mentioned outside Delhi and the billing address is mentioned as Delhi because vendor belongs to Delhi. The vendor himself couriers the consignment on behalf of NGO outside Delhi. PO states that the freight charges will be paid to Printing Agency as per actual.

    1. Can printing agency raise the freight bill to NGO? Or is there any other way out?- This is a case of Intrastate sale / supply ( with in Delhi as both supplier and Recipient are in Delhi and goods ( printed materials) is being dispatched to outside Delhi. As per Sec 10 of IGST act 2017, this is movement of goods on the instructions of NGO. Hence place of supply shall be Delhi and Printing press shall issue invoice with SGST/ CGST mode.

    2. Is it required to generate e-way bill by the printing Agency to dispatch the materials?- In case goods value is exceeding 50K , Yes Eway bill needs to be generated.

    3. Is there any GST implication? (Let me clear that this shipment is not for furtherance of business)- GST liability is for Supplier and not of NGO.

    4. Will it be GST bill or IGST bill?- SGST / CGST

    5. on POD printing agency can write the name of NGO as a consignor.- Eway bill shall mention details of place of delivery which is of NGO.

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