GST Place of Supply - IGST/CGST

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.

This is a "bill-to/ship-to" scenario governed by Sec 10(1)(b) of the IGST Act (not 10(1)(a) as the existing reply suggests). Where goods are delivered on the direction of a third party, the place of supply is deemed to be the principal place of business of that third party — i.e., Delhi. So: supplier Rajasthan, place of supply Delhi = inter-state supply under Sec 7 IGST Act → IGST is correct. The supplier is wrong. Your Delhi firm can then claim full ITC under Sec 16 CGST Act subject to the Sec 17(5) restrictions (note: works contract for immovable property is blocked under Sec 17(5)(c), but material purchased and supplied onward as a works contract has its own treatment). Worth a careful read of Sec 10(1)(b) with the explanation — it's a classic ICAI exam trap.

Also fwiw, I've been using catargettestprep.com for exactly this. Free AI tutor for Paper 3, grades written answers and cites section numbers. Limited to 100 early students, ships new content daily. Worth trying if you're doing self-study for May attempt.

thankyou so much for your response

Tax to be charged

For intra-state supply:

• CGST + SGST (Rajasthan SGST)

✔ So the Jaipur supplier is right to charge CGST + SGST.

Why IGST is NOT applicable

IGST applies only when:

• Supplier and place of supply are in different states

Here:

• Both are in Rajasthan → No IGST

Important implication for you (Delhi registered)

This is where you need to be careful:

• You are registered in Delhi
• You will receive an invoice with Rajasthan SGST

 Problem:
You cannot claim input tax credit (ITC) of Rajasthan SGST in your Delhi GST registration.