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Pos and igst

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PARVEEN DAHIYA

118 Points Posted on 14 January 2024

buyer and seller both are from Haryana but construction work of buyer is running at Punjab

and buyer purchase goods for use in construction work from Haryana but use at Punjab

plz tell me that where is POS and what kind of gst should charge by seller, igst or cgst,sgst

Replies (4)

Quick Summary

This discussion clarifies the Place of Supply (POS) and applicable GST for goods purchased in Haryana by a Haryana-based buyer, but intended for use in construction work in Punjab. While the goods are bought in Haryana, their ultimate destination and use in Punjab dictates that Punjab is the POS. Consequently, IGST is the appropriate tax to be charged by the seller, rather than CGST and SGST.

CA Rakesh Ishi

Working at Private Company

7751 Points Posted on 14 January 2024

I think the Place of Supply (POS) for goods under the Goods and Services Tax (GST) Act is determined based on the location where the goods are actually used or intended to be used.

Since the construction work is taking place in Punjab, the POS for the transaction is Punjab.

IGST will be applicable.