Frequently Asked Questions

Yes — if those let-out properties constitute “places of business” of the registered person, the GST position is that they should be declared as additional places of business (APOB). The fact that all properties are in the same State does not by itself eliminate this requirement.

For a person having multiple rental properties

Suppose a company/individual owns:

1. What is the “Bill To Ship To” model?

In a typical Bill To Ship To transaction, three persons are involved:

• A – The person who places the order with B and instructs B to send the goods directly to C.
• B – The person who supplies/sends the goods directly to C on behalf of A.
• C – The recipient of the goods.

2. How many supplies are involved in a Bill To Ship To transaction?

There are two supplies involved in the complete transaction. Accordingly, two tax invoices are required.

3. Who issues the two tax invoices?

The invoices are:

Invoice 1:
B → A

Invoice 2:
A → C

4. Who is responsible for generating the e-Way Bill?

For the movement of goods from B to C on behalf of A, either A or B can generate the e-Way Bill under the CGST Rules, 2017.

5. Is more than one e-Way Bill required for the movement from B to C?

No. Only one e-Way Bill is required for the movement of goods from B to C in the Bill To Ship To transaction.

6. What happens if B generates the e-Way Bill?

If B generates the e-Way Bill, the following details are required in Part A of GST FORM EWB-01:

7. What happens if A generates the e-Way Bill?

If A generates the e-Way Bill, the following details are required in Part A of GST FORM EWB-01:

8. Does the actual dispatch location have to belong to A?

No. Where the goods are physically dispatched by B, the Dispatch From location may be the principal or additional place of business of B.

9. What is the key difference between the two cases?

The difference is who generates the e-Way Bill and which invoice details are reported:

• If B generates the e-Way Bill → Invoice-1 (B → A) is reported.
• If A generates the e-Way Bill → Invoice-2 (A → C) is reported.

In both cases, the physical movement is from B to C.

10. What is the practical takeaway for a Bill To Ship To transaction?

The transaction involves:

Commercial flow:
B → A → C

Physical movement:
B → C

Invoices:

1. B → A
2. A → C

e-Way Bill:
Only one e-Way Bill, which can be generated by either A or B as per the prescribed procedure.

Source: Ministry of Finance / Press Information Bureau, clarification dated 23 April 2018, “Issues regarding ‘Bill To Ship To’ for e-Way Bill under CGST Rules, 2017.”

Question:
Whether formulations cleared have to be assessed to GST under the transferprice mechanism or on the basis of the MRP printed on them?

Answer:
The assessment of drugs and formulations under GST is generally based on the transaction value at each level of supply, and not on the MRP printed on the product.

GST follows an end-to-end Input Tax Credit (ITC) mechanism. Therefore, GST is charged on the actual transaction value between the supplier and recipient at each stage, subject to the valuation provisions under GST.

In simple terms:

GST Value = Transaction Value at the relevant stage of supply
Not = MRP printed on the formulation

For example:

Thus, MRP is not the basis for determining GST merely because it is printed on the formulation. MRP may become relevant for other regulatory/pricing purposes, but GST valuation ordinarily follows the transaction value, provided the conditions of Section 15 of the CGST Act are satisfied.

In the case of physician samples distributed free of cost, Input Tax Credit (ITC) availed on such samples is required to be reversed under Section 17(5)(h) of the WBGST Act, 2017, as goods disposed of by way of gifts or free samples are ineligible for ITC.

No GST is payable on the distribution of such physician samples free of cost, provided the transaction does not qualify as a supply under the GST law. However, the ITC reversal requirement must be complied with, wherever applicable.

Note: The statement that no tax is payable because the value of supply is zero should be used cautiously. Free distribution is not automatically outside the scope of supply in every circumstance.

Yes, two trade names are valid under one GSTIN. The GST Portal allows a registered taxpayer to add up to 9 additional trade names under the same GSTIN.

Example

Both trade names can be used by the same registered taxpayer, provided they relate to the same legal person/entity.

How to add the second trade name

1. Log in to the GST Portal.
2. Go to Services → Registration → Amendment of Registration (Core Fields).
3. Open the Business Details section.
4. Enter the second name under Additional Trade Name.
5. Submit the amendment using DSC/EVC, as applicable.

The GST Portal's official guidance confirms this facility.

Important: If the two trade names belong to two different legal entities—for example, two separate companies—one GSTIN generally cannot be shared between them.

ISD becomes relevant when the following conditions are satisfied:

• A head office or other office receives invoices for input services.
• The services relate to multiple GST registrations under the same PAN.
• The credit needs to be distributed to the respective recipient GST registrations.

Examples of common input services include:

• Audit and professional fees
• Legal and consultancy services
• Software subscriptions and IT services
• Advertisement and marketing services
• Common office rent and administrative services
• Management consultancy and other common services

Under the Finance Act, 2024 amendments, effective 1 April 2025, ISD registration and distribution are mandatory for the specified common input services received by an office on behalf of distinct persons registered under the same PAN.

3. Applicability from 1 April 2025

The ISD provisions have been amended with effect from 1 April 2025. Under amended Section 20, distribution of eligible input-service ITC through ISD is mandatory where an office receives invoices on behalf of distinct GST registrations. The amended provisions also cover specified input services liable to GST under the reverse charge mechanism (RCM).

Example: A company has GST registrations in Maharashtra, Gujarat and Karnataka.

Head Office — Maharashtra

Common consultancy invoice: ₹1,00,000 + 18% GST

Distribute eligible ITC through ISD

Maharashtra

₹6,000

Illustrative ITC

Gujarat

₹6,000

Illustrative ITC

Karnataka

₹6,000

Illustrative ITC

Illustration assumes equal eligible allocation among all three registrations. Actual distribution depends on attribution and the prescribed turnover-based formula.

4. Compliance requirements

• Obtain a separate ISD registration where required.
• Distribute eligible ITC through Form GSTR-6.
• Follow the allocation rules under Rule 39 of the CGST Rules.
• Ensure the credit is distributed to the correct GST registrations and in the prescribed tax heads.