We are registered company mumbai based. We have received service from Gujrat vendor for license fees for 1 year. They have charge us Local gst on Tax invoice due to supply of service is in Gujrat location, but we dont have any place of business in gujrat. Hence what will be the Gst - Whether IGST Or CGST-SGST will be charged as per gst law. Vendor is denying to raise invoice under IGST.
27 June 2022
If the location of the supplier and the place of supply of service are in the same state, it is considered as intra-state supply, thereby CGST & SGST will be charged.
Now if CGST+SGST for Gujrat is applicable, then we have to face ITC LOSS. Please advice what measure to be taken to prevent from this loss for this transaction. itc amt is 110000/-
28 June 2022
At present, I don’t find any such provision that allows or disallows such ITC in the Act. So, I leave this to other experts for their comments and suggestions.
02 July 2022
If the location of the supplier and the place of supply of service are in the same state, it is considered as intra-state supply, thereby CGST & SGST will be charged. But as you have mentioend that you have taken services in Mumbai, then in this case place of supply would be Mumbai(maharashtra ) only and Serice provider is liable to raise IGST invoive then only you can avail IGST credit because you have GST number of Maharashtra state as per my opinion.
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