Place Of Supply Under GST defines that the transaction will be counted as Inter-State or Intra-State and accordingly levy of IGST and SGST, CGST will be determined.
Know Who Supplier?
In GST, a supplier means somebody who supplies goods or services of any type. A supplier contains an agent acting on behalf of a supplier for supply of goods or services.
Under GST, the ‘Supply’ is a fundamental concept and all the provision of GST resolves around it. There are two things are considered namely:
Location of supplier under GST, it is a registered place of business of the supplier
Place of Supplier under GST
, it is the registered place of business of the recipient. it defines whether the transaction will be counted as intra-state(i.e within the same state) or inter-state(i.e. between two states) and accordingly the changeability of tax SGST, CGST (intra-state) & IGST(inter-state) will be determined.
Determining The Place Of Supply for Intra-state
For e.g. A supplier of craft products, Kloud Kreations Pvt. Ltd is having the registered office in Bangalore, Karnataka and it supplies goods to schools in Manipal, Karnataka. Since the supplier, as well as the recipient, are located in same state i.e Karnataka, So there will be ‘Intra-State Supply Of Goods’ and hence SGST & CGST will be calculated.
Determining Place of Supply for Inter-State Supply
For e.g. A supplier of craft products, Kloud Kreations Pvt. Ltd is having the registered office in Bangalore, Karnataka and whereas the recipient i.e Delhi Public School is located in Jaipur, Rajasthan. Since the supplier and the recipient are situated in different states i.e Karnataka and Rajasthan, so ‘Inter-State Supply Of Goods’ and hence IGST will be calculated for that case.