Dear Colleagues,
Mr. X was a GST Registered dealer of Rajasthan. He comes to Maharashtra and purchases a car from a showroom at Maharashtra and takes that car back to Rajasthan.
What tax should the car dealer charge ? Whether it is CGST and SGST or it is IGST?
As per my view, it is CGST and SGST because as per Section 10(1)(a) of IGST Act, 2017, place of supply in case where there involves movement of goods, the place of supply shall be the location where the movement terminates.
If my above answer is correct, then the question arises that what the car dealer would show in its return. The GST number of the customer that he would feed would contain the state code which would contradict if he charges CGST and SGST.
Any other view from your side should be supported by relevant section.
Thanks and Regards,
Dhrunil Bhatt
CAclubindia
