The Central and State governments will have simultaneous powers to levy the GST on intra-state supply. However, the Parliament alone shall have exclusive power to make laws with respect to levy of goods and services tax on inter-state supply.
Determination of Inter and Intra State Supplies under GST
As per Section 5 of IGST Act, Integrated Goods and Service Tax (IGST) will be levied on all inter-state supplies of goods or services or both. As per Section 9 of CGST Act, Central Goods and Service Tax (CGST) will be levied on all intra-state supplies of goods or services or both. Similarly, As per Section 9 of SGST Act of the all States, State Goods and Service Tax (SGST) to be levied on all intra-state supplies of goods or services or both. So, it is necessary to determine a supply whether it is Inter-state supply or Intra-state supply.
Inter State Supply
The following supplies are considered as Inter-state supply: For the supply of goods or services, where the location of the supplier and the place of supply are in –
two different statestwo different union territoriesin a state and a union territory
Supply of goods imported into the territory of India, till they cross the customs frontiers of India Supply of services imported into the territory of India Supply of goods or services or both –
When the supplier is located in India and the place of supply is outside IndiaSupplies to or by a Special Economic Unit or DeveloperAll other supplies which are made in the taxable territory, not being Intrastate supplies and not covered in the section
Intra State Supply
The following supplies are considered as Intra-state supply: For the supply of goods or services, where the location of the supplier and the place of supply are in
In the same stateIn the same union territory
The following supplies are not considered as Intra-state supply:
Supply of goods or services to or by a Special Economic Zone Unit or DeveloperGoods imported into the territory of India till they cross the customs frontiers of IndiaSupplies made to a tourist referred in section 15 – Integrated tax paid, on the goods taken out of India, by a tourist while leaving India, will be refunded subject to the condition that he is not resident of India
Author – M.Udaya Chandran, M.Com Recommended Articles
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