Determination The Place of Supply
Determination The Place of Supply is the most important aspect of the Goods and Services Tax system, one should know the proper place of supply before doing the taxation or issuing an Invoice under GST. We should determine the place of supply so that the proper treatment of GST can be done.in this article, we will discuss how to determine the place of supply or type of supplies.
as per the provisions of Section 5 of IGST Act, Integrated Goods and Service Tax (IGST) will be levied on all inter-state supplies of goods or services or both.
As per the provisions of Section 9 of CGST Act, Central Goods and Service Tax (CGST) will be levied on all intra-state supplies of goods or services or both.
Similarly, As per the provisions of Section 9 of SGST Act of the all States, State Goods and Service Tax (SGST) to be levied on all intra-state supplies of goods or services or both.
So, it is quite necessary to determine a supply whether it is Inter-state supply or Intra-state supply.
Inter-State Supply
The following supplies are considered as Inter-state supply:
For the supply of goods or services, where the location of the supplier and the place of supply are
- in -two different states two
- different union territories
- in a state and a union territory
- Supply of goods imported into the territory of India, till they cross the customs frontiers of India
- Supply of services imported into the territory of India
- Supply of goods or services or both –
>When the supplier is located in India and the place of supply is outside India
> Supplies to or by a Special Economic Unit or Developer
> All other supplies which are made in the taxable territory, not being Intrastate supplies and not covered in the section.
Intra-State Supply
The following supplies are considered as Intra-state supply:
For the supply of goods or services, where the location of the supplier and the place of supply are in –
- In the same state
- In the same union territory
following supplies are not considered as Intra-state supply:
- Supply of goods or services to or by a Special Economic Zone Unit or Developer
- Goods imported into the territory of India till they cross the customs frontiers of India
- Supplies made to a tourist referred in section 15 – Integrated tax paid, on the goods taken out of India, by a tourist while leaving India, will be refunded subject to the condition that he is not resident of India
Credit: M.Udaya Chandran