Place of Supply for GST

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183 Points Joined November 2013

Mr A GST Taxpayer from Karnataka owns JCB and he rents to Mr B who is registered from Telangana. But he doing work in Karnataka for that he hires JCB from Mr A. My question is, Is Mr.A Collects IGST or CGST+SGST ? Kindly help me.

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On 20 May 2025 at 16:20 Report
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Master in Accounts & high court Advocate
9157 Points Joined December 2011

To determine whether Mr. A should collect IGST or CGST+SGST, let's analyze the situation: Place of Supply -

 *Location of Service*: The place of supply for services is typically determined by the location where the service is provided. In this case, the JCB rental service is being used in Karnataka. GST Applicability

- *Inter-State vs. Intra-State*: Since Mr. A (Karnataka) is providing services to Mr. B (Telangana), this would be considered an inter-state supply, subject to IGST.

 Tax Collection - *IGST Collection*: Mr. A should collect IGST on the rental income from Mr. B, as it is an inter-state supply. By collecting IGST, Mr. A will comply with GST regulations for inter-state supplies [1].

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On 20 May 2025 at 18:48
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183 Points Joined November 2013

Thank your very much sir for the valuable reply. It would be of great help if You provide relevant section or case laws. Thank you.

 

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On 21 May 2025 at 09:37
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Tax Practitioner
22 Points Joined June 2013

CGST + SGST To be CHARGED Refer Section 8(2) of IGST ACT 2017.

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On 26 May 2025 at 22:51


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