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What to charge in bill CGST, SGST, or IGST

Today we will discuss What to charge in bill CGST, SGST, or IGST. It is important to identify the time and place to check whether CGST/SGST or IGST will be levied on the bill also it is important to check to whom the bill will be issued.

There are three taxes in the GST – CGST, SGST, and IGST

Interstate – If goods are supply from one state to another state it will be considered as Interstate and IGST will be applicable.

Intrastate – If goods are supply within the state it will be considered as intrastate and CGST and IGST will be applicable.

 How to check Interstate or Intrastate ?

It will  depend on two-factor –

Location of Supplier and

Place of Supply

Location of Supplier and Place of Supply

In same state

Intrastate SGST and CGST
Location of Supplier and Place of Supply

In different state

Interstate IGST

Time of supply of Services

If invoice issued within prescribed time (30days)

Date of invoice or date of payment whichever is earlier.

If invoice not issued within prescribed time (30days)

Date of completion of service or date of payment whichever is earlier.

 

Location of Service Provider and Service receiver–

As per section 2(65) and 2(64) of MGST –

  1. Registered place of business
  2. Fixed establishment of business
  • More than one POB/FE location directly concerned in supplying the service
  1. IF no registered place and a Fixed establishment of business than place of residence.

Apply the above rule in chronological order to find the location of service provider.

 

Place of Supply of service

Basic rule Location of service receiver
Service relating to Immovable property

 

Location of Immovable property

 

Performance-based Service Actual place of performance
Admission to amusement or park Actual place of amusement or park
GTA Location of service receiver if not registered place where goods handed over for transportation
Passenger transport service Location of registered service receiver
   

 In the above table, there are also specifically given for the Telecom,banking, and insurance service.

 Time of Supply of Goods

Earliest of the following will be the time of supply –

Date on which the goods removed by the Supplier or made available to the disposal of recipient

Date of invoice

Date of payment

Date on which the receiver shows receipt of the goods in his books of accounts (Mainly for branch transfer)

 

Place of supply of goods

Section 5(2)

Section Condition Place of supply
Section 5(2)

 

Movement of goods by the supplier or the recipient or by any other person Location of the goods available for the delivery to the recipient
Section 5(3)

 

No Movement of goods by the supplier or the recipient Location of the goods available for the delivery to the recipient
Section 5(2)(A) Goods are delivered by the supplier to the receiver on the direction of third person Principal place of the third person

  

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