26 April 2024
I have (Gujarat) sold goods to the client (Mumbai). Client asked me to deliver the goods on his site at Gujarat. In such case which tax should I charge IGST or (CGST+SGST)?
Further, In other situation, I have (Gujarat) provided SERVICE to the client (Mumbai) on his site at Gujarat. In such case which tax should I charge IGST or (CGST+SGST)?
10 August 2024
### **1. Sale of Goods with Delivery in Same State**
**Scenario:** - **Supplier:** Gujarat - **Recipient:** Mumbai (Maharashtra) - **Delivery Location:** Gujarat (same state as supplier)
**Determination of GST:**
- **Place of Supply for Goods:** - Since the delivery of goods is in Gujarat, the place of supply is Gujarat. Under the **GST Act**, the place of supply for goods where the movement is involved (and delivered to a location different from the supplier's place) is where the goods are delivered.
- **GST Applicable:** - **Intra-state Supply:** Since the place of supply is Gujarat and the supplier is also in Gujarat, this is considered an intra-state supply. - **Tax to be Charged:** For intra-state supplies, you should charge **CGST + SGST** (Central Goods and Services Tax + State Goods and Services Tax).
### **2. Provision of Services with Performance in Same State**
**Scenario:** - **Supplier:** Gujarat - **Recipient:** Mumbai (Maharashtra) - **Service Location:** Gujarat (same state as supplier)
**Determination of GST:**
- **Place of Supply for Services:** - For services provided at a location in Gujarat, the place of supply is Gujarat. Under **Section 12(2) of the CGST Act**, if the service is performed at the location where it is provided, the place of supply is where the service is performed.
- **GST Applicable:** - **Intra-state Supply:** Since the place of supply and the location where the service is performed are both in Gujarat, this is considered an intra-state supply. - **Tax to be Charged:** For intra-state supplies of services, you should charge **CGST + SGST**.
### **Summary**
- **For Sale of Goods:** Since the delivery location is the same state as the supplier's location (Gujarat), you should charge **CGST + SGST**.
- **For Provision of Services:** Since the service is performed in the same state as the supplier's location (Gujarat), you should also charge **CGST + SGST**.
**IGST** is applicable only for inter-state transactions where the place of supply and the supplier’s location are in different states.
CAclubindia
