A dealer in Maharashtra has to supply goods to a dealer regd in Karnataka..That dealer is receiving goods in maharashtra and will use in Maharashtra...As per rule IGST is to be charged but the purchasing dealer is asking for levy of CGST and SGST...can the selling dealer do that...
IGST is not applicable. The place of supply is dependent on 2 aspects - the location of the supplier and the place of supply as per section 10 of IGST (for goods).
Section 10 - Where goods terminate for delivery, i.e. Maharashtra. As supplier and place of supply is same state, CGST & SGST applicable.
Note: Karnataka dealer, cannot claim such credit (in KA) unless he is also registered in Maharastra.