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 SupplyIn same state | Intrastate | SGST and CGST |
| Location of Supplier and Place of SupplyIn different state | Interstate | IGST |
Place of Supply for transport service?
How to determine place of supply in transportation service?
- If point of origin and the point of destination are within India then place of supply will be as follows:
| If customer is registered | Location of Customer |
| If customer is unregistered | Location at which such goods are delivered by transportation |
XYZ Ltd, a registered person in Delhi sold the goods to Mr. A, who lives in Mumbai. The company took the service of ABC transporter to deliver the goods. The goods were transported from company’s warehouse in Delhi
Place of service –Delhi
XYZ Ltd, an unregistered person in Delhi sold the goods to Mr. A, who lives in Mumbai. The company took the service of ABC transporter to deliver the goods. The goods were transported from company’s warehouse in Delhi
Place of service –Mumbai
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 –
- Registered place of business
- Fixed establishment of business
- More than one POB/FE location directly concerned in supplying the service
- 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 |
