One of my client supplied a service within the state, so he levied CGST and SGST. But the receiver is asking to levy IGST to claim ITC as his Gst is in other state . Is it is correct to levy IGST eventhough the place of supply within the state??
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Quick Summary
This discussion explores the correct Goods and Services Tax (GST) to levy when a service is supplied within a state, but the recipient is registered in another state and wishes to claim Input Tax Credit (ITC). While CGST and SGST are typically applied for intra-state supplies, the recipient's request for IGST to facilitate ITC claims raises questions about the 'Bill to Ship to' model and the determination of the place of supply.
One of my client supplied a service within the state, so he levied CGST and SGST. But the receiver is asking to levy IGST to claim ITC as his Gst is in other state . Is it is correct to levy IGST eventhough the place of supply within the state??
As per "Bill to Ship to" mode You will Charge IGST...
Place of supply of Services and Location of the Supplier are in a same State it is Intra-State in my view as it is destination based. If there is any other opinion, please suggest.