28 March 2023
My Client is Maharashtra Registered having supplying Boat services to his clients as follows, kindly guide whether to charge CGST-SGST or IGST inbelow cases :-
1. Clients registered out of Maharashtra and given them boat services in Maharashtra. 2. Clients registered in Maharashtra and given them boat services out of Maharashtra.
26 July 2024
The GST treatment for boat hiring services depends on the location of the service provider and the location where the services are actually rendered. Here’s how to handle GST for boat hiring services based on the scenarios you provided:
### **1. GST on Boat Services: General Principles**
- **Place of Supply:** For services, GST is determined based on the "place of supply" which is where the service is provided. - **Location of the Service Provider and Recipient:** The place of supply rules also depend on whether the service recipient is located within the same state or in another state.
### **2. Specific Scenarios for Boat Hiring Services**
**a. **Clients Registered Out of Maharashtra, Services Provided in Maharashtra:**
- **Nature of Supply:** - This is an **inter-state supply** because the recipient is located outside Maharashtra but the service is provided within Maharashtra.
- **GST Applicability:** - **IGST (Integrated Goods and Services Tax)** should be charged on the boat hiring services because the service is provided in Maharashtra but the recipient is located in another state.
**b. **Clients Registered in Maharashtra, Services Provided Out of Maharashtra:**
- **Nature of Supply:** - This is an **inter-state supply** from the perspective of the service location since the services are rendered outside Maharashtra.
- **GST Applicability:** - **IGST** should be charged on the boat hiring services because the services are provided outside Maharashtra while the recipient is located within Maharashtra.
### **3. Summary of GST Applicability**
**a. **Service to Clients Registered Out of Maharashtra:** - **Boat Services Provided in Maharashtra:** - **Charge:** IGST - **Rationale:** The place of supply is Maharashtra, but the recipient is located outside Maharashtra.
**b. **Service to Clients Registered in Maharashtra:** - **Boat Services Provided Outside Maharashtra:** - **Charge:** IGST - **Rationale:** The place of supply is outside Maharashtra, while the recipient is located in Maharashtra.
### **4. Practical Steps**
**a. **Issuing Invoices:** - For both scenarios, issue a GST invoice mentioning IGST. Ensure the invoice includes details such as the place of supply, GST number of the recipient, and the applicable GST rate.
**b. **Reporting and Compliance:** - **GSTR-1:** Report the inter-state supply and IGST in the relevant sections of GSTR-1. - **GSTR-3B:** Include the IGST liability in GSTR-3B and ensure proper reporting of the input tax credits if applicable.
**c. **Documentation:** - Maintain detailed records of the place of supply, client location, and the nature of the service provided to support your GST filings.
### **Conclusion**
- **IGST** should be charged in both cases because boat hiring services are provided across state borders, whether the recipient is within or outside Maharashtra. Ensure accurate GST invoicing and compliance with inter-state supply rules.
If you need further clarity or specific advice based on additional details, consulting with a GST expert or tax advisor is recommended.
CAclubindia
