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Place of supply for service

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priya vijay

27 Points Posted on 03 February 2025

what gst is charged if it involves service by supplier to recipient from interstate

Replies (3)

Quick Summary

This discussion clarifies the Goods and Services Tax (GST) applicable to services supplied between different states in India. Generally, Integrated GST (IGST) is charged on such interstate transactions. However, there's a nuance regarding the 'place of supply', which can sometimes lead to the application of Central GST (CGST) and State GST (SGST) if the department interprets the place of service availing as the determining factor. It's recommended to consult Sections 7, 12, and 13 of the IGST Act for precise guidance.

Rounak Agarwal

Accountant

66 Points Posted on 04 February 2025

If a supplier provides a service to a recipient from a different state (interstate transaction), Integrated GST (IGST) is charged under the GST law in India.

IGST is levied instead of CGST and SGST

priya vijay

27 Points Posted on 04 February 2025

Thank you for your reply.

There's still ambiguity in this, as we had audit from the department they were of the opinion that' where ever the service is availed that state will need to be benefited. Hence even while processing the einvoidr well need to specify the place of supply, which in this case will be suppliee place, so cgst and sgst is levied. We were infact asked to reverse the igst by the department.

Please recheck once again.

Regards

Rajeshwari R

Rajendra Prasad

Employee Private

1142 Points Posted on 04 February 2025

Relating to supply of services, has to check the type of services and place of supply and other paremeters. It is best to go through the Section 7, 12 and 13 of IGST Act.