Taxability under gst

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Querist : Anonymous

Querist : Anonymous (Querist)

09 October 2017 Dear experts,
Question is related to Place of supply & locations of supply. Shift to.
(1) Apple p.ltd. regd in MH - buyer
(2) Smart p Ltd regd in MP - seller
(3) Style Ltd.is a client of Apple &is in MP

Apple p. Ltd (MH) got an order from style Ltd MP to supply of Power equipment.Apple don't make the equipment hence order to Smart P.Ltd.
Now what type of GST will be applicable in the case
(Consumption base tax ? )

Smart p Ltd to Apple p.ltd.----?
Apple to smart Ltd - IGST

Regards

Vishakha Kejriwal.

Vishakha Kejriwal. (Expert)

10 October 2017 IGST will be applicable in billings of both Smart Ltd. to Apple and Apple to Style Ltd.

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Querist : Anonymous

Querist : Anonymous (Querist)

11 October 2017 आपका धन्यवाद जी , लेकिन इसे consumption base टेक्स क्यों कहते हैं ?

Vishakha Kejriwal.

Vishakha Kejriwal. (Expert)

11 October 2017 GST is a consumption based because the place where the goods and services are ultimately or finally consumed will decide the State that will collect the tax.

Querist : Anonymous

Querist : Anonymous (Querist)

11 October 2017 Very true ji, but see place of supply & ultimate buyer is in MP state , consumption state is also MP hence it should be CGST SGST why IGST ? . Hope you will describe

Vishakha Kejriwal.

Vishakha Kejriwal. (Expert)

11 October 2017 In a bill to ship to transaction there is a concept of deemed supply and since the primary supplier that is Apple is located in Maharashtra IGST will be applicable . For more clarity please refer to Section 10(1)(b) of the IGST Act.

Querist : Anonymous

Querist : Anonymous (Querist)

11 October 2017 Thanks for your valuable guidance Ji

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