19 March 2022
we are Gujarat based entity. Gujarat Government has given well cleaning work contract to Tamil Nadu based company. We are working on sub-contract for that Tamil Nadu based company. We are providing well cleaning service. Wells are situated at Gujarat only. Sir, I have doubt that whether we have to charge CGST/SGST or IGST? Further we had charged IGST till today and if CGST/SGST is to be charged whether we have to pay tax along with interest and penalty?
19 March 2022
Place of Supply – Section 12 & 13 of IGST Act – The place of supply in relation to an immovable property including works contract services is the place where the immovable property is located.
Pay CGST/SGST and get refund of IGST paid. No interest will need to be paid when the taxpayer pays the correct tax later on. The penalty will not apply in these scenarios.
19 March 2022
CGST/SGST will be charged instead of IGST. Pay CGST/SGST and claim refund of IGST. No interest on you. However your customer will be in a difficult positio since he is not eligible for ITC of CGST/SGST and will have to reverse IGST ITC if he has already claimed it.
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