Place of supply

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Querist : Anonymous

Querist : Anonymous (Querist)

17 August 2018 Dear experts,

"A " Rajasthan engaged vehicle to deliver the goods from Rajasthan to " B " Tamilnadu. Both A & B are registered.
Is this transaction attracts IGST OR CGST /SGST. Transporter is also located @ Rajasthan.
Pls clarify the issue.

Querist : Anonymous

Querist : Anonymous (Querist)

18 August 2018 Dear Experts,

pls reply

VIPIN KUTUMBALE

VIPIN KUTUMBALE (Expert)

18 August 2018 you have not mentioned B he registerd at Rajasthan or Tamilnadu, If registered at out of Rajsthan IGST applicable but If B Is registered in Rajasthan then CGST+SGST applicable evern goods crossing Rajasthan boundry

Querist : Anonymous

Querist : Anonymous (Querist)

18 August 2018 B' is Registered at Tamilnadu. Is it applicable for payment of GTA on RCM

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

10 August 2024 To address the questions regarding the place of supply and applicable GST in the scenario where goods are transported from Rajasthan to Tamil Nadu, here’s a detailed breakdown:

### **1. Place of Supply and Applicable GST:**

**Scenario:**
- **Supplier A:** Located in Rajasthan
- **Recipient B:** Located in Tamil Nadu
- **Transporter:** Located in Rajasthan

**Transaction Details:**
- Goods are delivered from Rajasthan to Tamil Nadu.

**Determination of GST:**
- **Place of Supply for Goods:**
- According to **Section 10 of the CGST Act**, for goods supplied where the movement of goods is involved (and where the supply is on a Bill to Ship to basis), the place of supply is where the goods are delivered.
- In this case, since the goods are being delivered to Tamil Nadu, Tamil Nadu is the place of supply.

**GST Applicable:**
- Since the place of supply is Tamil Nadu and the supplier is in Rajasthan, this transaction constitutes an **inter-state supply**.
- For inter-state supplies, **Integrated GST (IGST)** is applicable.

### **2. Goods Transport Agency (GTA) and Reverse Charge Mechanism (RCM):**

**GTA Services:**
- Under GST, services provided by a Goods Transport Agency (GTA) to a registered person is subject to reverse charge mechanism (RCM) as per **Notification No. 13/2017 – Central Tax (Rate)**.

**Applicability:**
- Since **Recipient B** is a registered person in Tamil Nadu and the transporter is located in Rajasthan, the following points apply:
- **GTA Service:** The service of transporting goods by GTA from Rajasthan to Tamil Nadu is subject to RCM.
- **RCM:** **Recipient B** (located in Tamil Nadu) is liable to pay GST on the transport services under RCM.

### **Summary:**

1. **GST for the Supply of Goods:**
- **IGST** is applicable since it is an inter-state supply.

2. **GTA Service (Transport):**
- **RCM** applies, meaning **Recipient B** in Tamil Nadu will need to pay GST under reverse charge for the transport services provided by the GTA.

To ensure compliance, the invoice for the supply of goods should include IGST, and the recipient should account for GST under RCM for the transport services.

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