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Sec 7 of IGST Act - Inter State Supply (in Hindi)
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Place of supply - inter state supply sec 7 of IGST Act

CA Arun Chhajer
Myself a Chartered Accountant (CA) & Company Secretary (CS) & having the 10 years experience. I have worked with TCS ICICI Bank DK etc. Now

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  1. Place of Supply CA & CS Arun Chhajer (Jain) New Delhi


  2. Section 7 of IGST Act, 2017, Inter-State supply 7 Inter-State supply 7. (1) Subject to the provisions of section 10, supply of goods, where the location of the supplier and the place of supply are in (a) two different States; (b) two different Union territories; or (c) a State and a UT, shall be treated as a supply of goods in the course of inter-State trade or commerce. (2) Supply of goods imported into the territory of India, till they cross the customs frontiers of India, shall be treated to be a supply of goods in the course of inter-State trade or commerce. CA & CS Arun Chhajer (Jain) New Delhi


  3. Inter State Supply (3) Subject to the provisions of section 12, supply of services, where the location of the supplier and the place of supply are in (a) two different States; (b) two different Union territories; or (c) a State and a UT, shall be treated as a supply of services in the course of inter-State trade or commerce. (4) Supply of services imported into the territory of India shall be treated to be a supply of services in the course of inter-State trade or commerce. (5) Supply of goods or services or both (a) when the supplier is located in India and the place of supply is outside India; (b) to or by a Special Economic Zone developer or a Special Economic Zone unit; or (c) in the taxable territory, not being an intra-State supply and not covered elsewhere in this section, shall be treated to be a supply of goods or services or both in the course of inter-State trade or commerce. CA & CS Arun Chhajer (Jain) New Delhi


  4. Section 8: "Intra State Supply" (IGST Act, 2017) (1) Subject to the provisions of section 10, supply of goods where the location of the supplier and the place of supply of goods are in the same State or same UT shall be treated as intra- State supply: Provided that the following supply of goods shall not be treated as intra-State supply, namely (i) supply of goods to or by a Special Economic Zone developer or a Special Economic Zone unit; (i) goods imported into the territory of India till they cross the customs frontiers of India; or (ii) supplies made to a tourist referred to in section 15. (2) Subject to the provisions of section 12, supply of services where the location of the supplier and the place of supply of services are in the same State or same UT shall be treated as intra- State supply: Provided that the intra-State supply of services shall not include supply of services to or by a Special Economic Zone developer or a Special Economic Zone unit. CA & CS Arun Chhajer (Jain) New Delhi


  5. Section 8: "Intra State Supply" (IGST Act, 2017) Explanation 1: For the purposes of this Act, where a person has,- (i) an establishment in India and any other establishment outside India; (i) an establishment in a State or UT and any other establishment outside that State or UT, or (i) an establishment in a State or UT and any other establishment being a business vertical registered within that State or UT then such establishments shall be treated as establishments of distinct persons. Explanation 2: A person carrying on a business through a branch or an agency or a representational office in any territory shall be treated as having an establishment in that territory CA & CS Arun Chhajer (Jain) New Delhi


  6. In brief If location of the supplier and the place of supply are in the same state/UT Intra-state(local) supply of goods and services If location of the supplier and the place of supply are in the different state/UT Inter-state(central) supply of goods and services ection 15:"Tax Refund to Tourist Leaving India" (IGST Act, 2017) rovision relating to "Refund of Integrated Tax Paid on Supply of Goods (and not services) to International ourist Leaving India", are as under: The integrated tax paid by tourist leaving India on any supply of goods taken out of India by him shall be efunded in such manner and subject to such conditions and safeguards as may be prescribed. xplanation: For the purposes of this section, the term tourist" means a person not normally resident in ndia, who enters India for a stay of not more than 6 months for legitimate non-immigrant purposes. As per proviso to sec 8(1) of the IGST Act, supplies made to an outbound tourist referred to in section 15 hall not be treated as intra-state supply. Therefore, if the said tourist procures goods even with in the state, chhajerain) upply would be subject to IGST. New Delhi


  7. Determination of place of supply of goods and services Meaning of "location of supplier of services" Sec2(15) of the IGST Act - where a supply is made from a place of business for which registration has been obtained, the location of such place of business; Where a supply is made from a place other than the place of business for which registration has been obtained (a fixed establishment elsewhere), the location of such fixed establishment; Where a supply is made from more than one establishment, where the place of business is fixed establishment, the location of establishment most directly concerned with the provision of the supply. In the absence of such places, the location of the usual place of residence of the supplier Meaning of "location ofrecipient of services" sec 2(14) .Where a supply is received at a place of business for which the registration has been obtained, the location of such place of business; Where a supply is received at a place other than place of business for which registration has been obtained thy location of such fixed establishment; Where a supply is received at more than one establishment, whether the place of business or fixed establishment, the location of establishment most directly concerned with the receipt of the supply; and In absence of such places, the location of the usual place of residence of the recipient CA & CS Arun Chhajer (Jain) New Delhi


  8. Definition of usual place of residence of the supplier As per Section 2(113) of CGST Act, 2017, unless the context otherwise requires, the term "usual place of residence" means (a) in case of an individual, the place where he ordinarily resides; (b) in other cases, the place where the person is incorporated or otherwise legally constituted Definition of Recipient As per Section 2(93) of CGST Act, 2017, unless the context otherwise requires, the term "recipient" of supply of goods or services or both, means (a) where a consideration is payable for the supply of goods or services or both, the person who is liable to pay that consideration; (b) where no consideration is payable for the supply of goods, the person to whom the goods are delivered or made available, or to whom possession or use of the goods is given or made available, and (c) where no consideration is payable for the supply of a service, the person to whom the service is rendered, and any reference to a person to whom a supply is made shall be construed as a reference to the recipient of the supply and shall include an agent acting as such on behalf of the recipient in relation to the goods or services or both supplied CA & CS Arun Chhajer (Jain) New Delhi


  9. Determination of place of supply of goods and services SN Place of supply of goods Place of supply of services 1 Section 10: goods other than Section 12: services where the supply of goods imported into, or exported from India location of supplier of service and the location of the recipient of services is in India 2 Section 11: goods imported Section 13: services where the into, or exported from India location of supplier of service or location of the recipient of services is outside India CA & CS Arun Chhajer (Jain) New Delhi


  10. Place of supply of goods other than supply of goods imported into, or exported from India. Sec 10 of the IGST Act (1) The place of supply of goods, other than supply of goods imported into, or exported from India, shall be as under,- (a) where the supply involves movement of goods, whether by the supplier or the recipient or by any other person, the place of supply of such goods shall be the location of the goods at the time at which the movement of goods terminates for delivery to the recipient; (b) where the goods are delivered by the supplier to a recipient or any other person on the direction of a third person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to the goods or otherwise, it shall be deemed that the said thirc person has received the goods and the place of supply of such goods shall be the principal place of business of such person; (c) where the supply does not involve movement of goods, whether by the supplier or the recipient, the place of supply shall be the location of such goods at the time of the delivery to the recipient; (d) where the goods are assembled or installed at site, the place of supply shall be the place of such installation or assembly; (e) where the goods are supplied on board a conveyance, including a vessel, an aircraft, a train or a motor vehicle, the place of supply shall be the location at which such goods are taken on board. (2) Where the place of supply of goods cannot be determined, the place of supply shall be determined in such manner as may be prescribed. CA & CS Arun Chhajer (Jain) New Delhi