Intra state Supply attracting igst?

Intra-State supplies attracting IGST will be enabled only when the supply attract reverse charge is selected by the taxpayer.

In the case of Priority Sector Lending Certificates (PSLCs) traded between banks, irrespective of the state where the banks are registered, the supply is always subject to tax under the Reverse Charge Mechanism (RCM) attracting IGST. For example, if two banks located in Tamil Nadu exchange PSLCs, the recipient bank must pay IGST under RCM, even though it is an intrastate transaction. So Intra-State Supplies attracting IGST will be enabled only when RCM also enabled

The box exists because some supplies are inter-State by law even when the supplier and place of supply are in the same State. Cases:

• Supplies to an SEZ developer or unit in your own State: inter-State under Sec 7(5)(b) IGST. These are usually reported in SEZ tables 6B/9.

• Supply to a foreign tourist: Sec 15 IGST refund scheme.

• Supplies by an Indian supplier where Sec 7(5)(c) residuary applies.

• Supplies under reverse charge where the recipient pays IGST.

• Since the 2020 IGST amendment: supplies to a Duty Free Shop / Customs bonded warehouse.

For a normal domestic intra-State sale to a registered buyer, leave it unticked and charge CGST + SGST. Charging IGST wrongly does not count as payment of the right tax. The supplier must pay CGST + SGST and claim a refund of the IGST under Sec 77 CGST / Sec 19 IGST.