Cgst/sgst/igst structure for online services

Hi,

New to this forum and not from Finance background. Anything seemingly ignorant may be excused.

I would like to know the breakup of CGST/SGST/IGST for the following scenario of an online service, where no goods is physically transferred from one state to another.

For example, if there is an online newspaper or an online coaching center, which is located in a particular state and has paying customer all across the country, how will the CGST, SGST or IGST be applicable?

Let us say, the online newspaper/coaching center is based in Maharashtra and has a user located in Delhi who has paid a montly subscripttion of Rs 100.

How will the various components of GST be computed?

 

Any clarification would be a great help.

Thanks.

 

 

 

Replies (4)

If your busniess is online  then same will will be treated as  supply of service not Goods  and if you are providing your  service inter-state  IGST will be applicable and within sate  CGST/ SGST  will be applicable , this as per the section 7(3)  and section 8(2)  of the IGST act 2017 .

The following category of service is OIDAR service governed by default section:-

The place of supply of services, except the services specified in sub-sections (3) to (14),––

(a) made to a registered person shall be the location of such person;

(b) made to any person other than a registered person shall be,––

(i) the location of the recipient where the address on record exists; and

(ii) the location of the supplier of services in other cases.

Assuming all your customers to be unregistered and you dont have the address on record of any of your customers, place of supply(POS) is location of supplier i.e. Maharashtra. 

Since POS and location of supplier is in same state i.e. Maharashtra therefore CGST and SGST is chargeable.

 

Sir with reference to  your reply Assuming all your customers to be unregistered   , If  any body  is registerd out side sate  then what  will be palce of supply ?.

Place of supply will be the location of the registered person and IGST is to be charged for such transaction.

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