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Charging CGST/SGST or IGST

24 August 2017

Keeping in view the following as reflecting in IGST guide "Any indirect tax, by definition, is a consumption tax, the incidence of which, is borne by the consumer. Logically, the tax must accrue to the destination State having jurisdiction over the consumer", I would like to know which tax (CGST/SGST or IGST) will be applied in case of Supplier RD in Maharashtra supplies goods to Billed to RD (ordered by contractor in Tamilnadu) to Shipped to RD/URD construction site (owned central/state government)?

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8 Replies

namit (zz) (225 Points)
Replied 24 August 2017

igst. state of TN and MH will be taken for levying igst. the place of 3rd person, who orders the supply will be taken

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Hamza Ansari (Accountant) (217 Points)
Replied 24 August 2017

Sir, If your place of business is in Maharashtra so you have to charge IGST for interstate transfer of goods.

ramkumarsingh8591@gmail.com (66 Points)
Replied 24 August 2017

in works contract GST is @ 18%•
kindly clarify an Agency has purchased materials and paid gst on materials.whether he can claim work contract on materials including gst paid by him or work contract is excluding gst on materials.

Gaurav Palta (484 Points)
Replied 25 August 2017

In case agency has paid self for materials then GST on materials can be taken as ITC.In case works contract is entirely supplied including goods and materials no ITC can be claimed.

ramkumarsingh8591@gmail.com (66 Points)
Replied 25 August 2017

yes
thanks
agreement is between contract and govt department.contractor paid GST on materials.works contract @ 18 % is paid by contractor as GST.contactor shall get ITC on gst tax paid by him on materials.