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Which tax is to apply? whether igst or sgst/cgst

Vidyadhar S. Patil (Finance Professional) (49 Points)

09 August 2017

I am a registered GST dealer in Karnataka. I am entered into an agreement with a GST dealer in Delhi for supply of services in Karnataka. This dealer is not having any place of business at Karnataka and is having only GST registation at Delhi address. Please clarify which tax I have to apply while charging Invoice for services rendered to such dealer. Whether it is IGST or SGST/CGST?

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13 Replies

Kaushik Deepak (KD) (Officer Accountant) (1136 Points)
Replied 09 August 2017

Who are you billing

kamalarao pamula (135 Points)
Replied 09 August 2017

you are providing service to a receipient of

kamalarao pamula (135 Points)
Replied 09 August 2017

situated at other state and he is registered so you have to collect IGST even though you provide service in your state

Kaushik Deepak (KD) (Officer Accountant) (1136 Points)
Replied 09 August 2017

YES, you will charge IGST even though you provide service within same state

Vidyadhar S. Patil (Finance Professional) (49 Points)
Replied 09 August 2017

I am rasing invoice to a delhi dealer.

Sushil Mankad (Sr. Accounts Executive) (117 Points)
Replied 09 August 2017

correct.. IGST will be charge.

Vidyadhar S. Patil (Finance Professional) (49 Points)
Replied 09 August 2017

I am raising invoice to a delhi dealer.

Sushil Mankad (Sr. Accounts Executive) (117 Points)
Replied 09 August 2017

correct.. IGST will be charge.

Kaushik Deepak (KD) (Officer Accountant) (1136 Points)
Replied 09 August 2017

Originally posted by : Vidyadhar S. Patil
	I am rasing invoice to a delhi dealer.

you will charge IGST

Umesh V Naig (Statutory Analyst) (452 Points)
Replied 09 August 2017

supply of services on destination based since the services are done at Karnataka , you have to bill from Delhi and supply address for Karnataka with CGST+SGST but your dealer wanted to avail the ITC input on the same , he needs to take registration in Karnataka either on temporary basis or permanent basis and

your dealer when he is billing on his customer can adjust ITC as theory of "Supply chain" method is applied.

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RAJA P M ("Do the Right Thing...!!!") (127355 Points)
Replied 09 August 2017

Originally posted by : Umesh V Naig
	supply of services on destination based since the services are done at Karnataka , you have to bill from Delhi and supply address for Karnataka with CGST+SGST but your dealer wanted to avail the ITC input on the same , he needs to take registration in Karnataka either on temporary basis or permanent basis and your dealer when he is billing on his customer can adjust ITC as theory of "Supply chain" method is applied.

You are exactly correct Mr. Umesh V Naig....

Here place of Supply of service and same Service receipient is same state then how we collect IGST...???????????????

(The same question in other forum. But, Answer is different. Here you said correct answer.

I fully appreciate you...)

I also give the link...

/forum/igst-or-sgst-cgst-414591.asp

1 Like

Vidyadhar S. Patil (Finance Professional) (49 Points)
Replied 09 August 2017

Dear Raja P M Sir, I am based at Karnataka and providing services in Karnataka for a dealer in Delhi. So please explain me how I should go ahead with the billing with IGST or SGST/CGST.

Kaushik Deepak (KD) (Officer Accountant) (1136 Points)
Replied 10 August 2017

Originally posted by : Vidyadhar S. Patil
	Dear Raja P M Sir, I am based at Karnataka and providing services in Karnataka for a dealer in Delhi. So please explain me how I should go ahead with the billing with IGST or SGST/CGST.

@ Mr. Vidyadhaar ji dont confuse your self

actual buyer means which give order to deliver the goods, in your case actual buyer (delhi dealer) give order to supply of service in karnataka

place of supply= principal place of business not recipent

so you will charge IGST

1 Like