Inter state supply of goods & service

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 June 2017 Dear Experts.
plz enlighten.. on supply of inter state goods or service. whether supplier or service provider need to charge GST in invoice or buyer & service receiver will pay GST under RCM?

Thanks
Anamika

CA Shubhanshu Jain

CA Shubhanshu Jain (Expert)
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20 June 2017 Hiii,

First Let talk about reverse charge method under GST

Under following circumstances receiver has to pay GST on its own under reverse charge
- GST is to be paid on such supplies which are specifically mentioned by government
and
- On receiving supply (whether of goods or services) from unregistered dealer.

So, in case tax is to be paid under reverse charge method then supplier has no role in it all compliances are to be done by receiver.

Now,l If supplier is making inter state supply he has to take registration and there is no threshold limit for supplier making inter state supplies.

So, supplier engaged in inter state supply has to charge IGST in his invoice

and

Buyer or receiver (in case of interstate supply also) is liable to pay tax under reverse charge only if he is receiving specified goods/services or receiving supply from unregistered dealer

I hope this will resolve your query

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