In order to avail credit of input services, does POS need to be in recipient state only?
ex: A from telangana has received some repair services in Delhi, now, POS will be Delhi and cgst & sgst are charged in invoice. Now my GSTR2B is showing non availability of Input with reason, POS lies in the supplier state.
please clarify me on the input availability in this case.
Determining The Place Of Supply Of Services
GST is destination-based tax i.e consumption tax, which means tax will be levied where goods and services are consumed and will accrue to that state. Under GST, there are three levels of Tax, IGST, CGST & SGST and based on the ‘’place of supply’’ so determined and the location of the supplier, the respective tax will be levied.
IGST is levied where the transaction is inter-state, and CGST & SGST are levied where the transaction is intra-state. For understanding the place of supply for services, the following two concepts are very important namely:
- Location of the recipient of services
- Location of the supplier of services
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