09 October 2017
Dear experts, Question is related to Place of supply & locations of supply. Shift to. (1) Apple p.ltd. regd in MH - buyer (2) Smart p Ltd regd in MP - seller (3) Style Ltd.is a client of Apple &is in MP
Apple p. Ltd (MH) got an order from style Ltd MP to supply of Power equipment.Apple don't make the equipment hence order to Smart P.Ltd. Now what type of GST will be applicable in the case (Consumption base tax ? )
Smart p Ltd to Apple p.ltd.----? Apple to smart Ltd - IGST
11 October 2017
GST is a consumption based because the place where the goods and services are ultimately or finally consumed will decide the State that will collect the tax.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
11 October 2017
Very true ji, but see place of supply & ultimate buyer is in MP state , consumption state is also MP hence it should be CGST SGST why IGST ? . Hope you will describe
11 October 2017
In a bill to ship to transaction there is a concept of deemed supply and since the primary supplier that is Apple is located in Maharashtra IGST will be applicable . For more clarity please refer to Section 10(1)(b) of the IGST Act.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
11 October 2017
Thanks for your valuable guidance Ji