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GST Place of Supply - IGST/CGST

Rules 40 views 1 replies

Sourabh Katiyar

138 Points Joined February 2011

Respected Members,

I have a question regarding Place of Supply and applicable tax.

We are registered In delhi as regular Dealer.

We got an order of Construction of Hotel in Rajasthan. We baught Some Construction material from local dealer of Jaipur.

Invoice was issued on Our Name and Material was dispatched to the Site in Jaipur.

Now the Supplier in Rajasthan is saying he will issue Invoice and Charge CGST and SGST as the supply is made in Jaipur itself.

and if I am not wrong IGST should be charged on the same invoice.

Jaipur Supplier Consultant is also saying he will Charge CGST/SGST.

Request you to please Help.

Which Tax will be applicable on the same.

Thank You.

Replies (1)

Aashok FC Advisory

Finance Compliance Consultant

320 Points Joined March 2026

Since the goods are delivered at Jaipur site, the place of supply under section 10(1)(a) of IGST Act is Rajasthan, being the place where movement of goods terminates for delivery. As the supplier is also located in Rajasthan, the supply is intra-State under section 8 of IGST Act, hence CGST + SGST is applicable, not IGST. Mere fact that the buyer is registered in Delhi does not automatically make it inter-State. However, Rajasthan SGST credit may not be useful against Delhi output liability.