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IGST or CGST and SGST

Aj Style (Student) (345 Points)

07 February 2019

suppose I have a Delhi GSTIN and I provide crane service to party. Now my question is what tax to be charged if I provide Crane services in Delhi but party has Mumbai GSTIN

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20 Replies

Kutty Dhanush (other) (317 Points)
Replied 07 February 2019

As party remains same, CGST+SGST.

1 Like

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Aj Style (Student) (345 Points)
Replied 07 February 2019

I didn't get it what "party remain same". I mean to ask that if I provide service in Delhi to party having Mumbai GSTIN should I charged sgst or igst

Kutty Dhanush (other) (317 Points)
Replied 07 February 2019

Place of supply is Delhi / same state, so CGST+SGST.

1 Like

rohan (artical) (4 Points)
Replied 07 February 2019

It doesn't matter what TIN other party have. if place of Supply is Delhi (Same State) it will attract CGST + SGST

Aj Style (Student) (345 Points)
Replied 07 February 2019

then how will other party claim ITC in there return. wouldn't Tally software show error in there return

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Dhiraj Wadhwani (53 Points)
Replied 07 February 2019

As the place of supply is delhi and service provider is also in delhi. CGST & SGST shall be levied by him for such service. The service receiver from my point of view cannot claim the ITC for such service and will have to write it of as expense in their books of accounts.
The next question will how will the supplier show it in GST returns. From my view, you will have to report it under B2C as we dont want to transfer the input to the receipient.

Afreen Fatima (Aricle Assisstant (Final Year)) (129 Points)
Replied 07 February 2019

In case services provided to registered person POS will be the location of such person. Sec. 12(2)(a) of IGST Act. In this case IGST payable as recipient of service is registered in Mumbai. If the service is provided in relation to immoveable property, POS will be the location at which the immoveable property located. Sec. 12(3). If the immoveable property located in Delhi, CGST & SGST will be payable.

2 Like

Vinod Babu (24191 Points)
Replied 07 February 2019

Yes, POS is Delhi, so CGST and SGST applicable.
The service receiver can claim ITC if he has business place(gst registration) in Delhi otherwise no way to claim ITC.

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 08 February 2019

As per New Amendment Act 31 of 2018 being Notified By Notification No. 2/2019 Dt. 29.1.19 , The new Insertion under Explanation (ii) in Section 16(2) CGST : "where the services are provided by the supplier to any person on the direction of & on account of such regiserted Person"

So in context to above new insertion in Section 16 the Bill To Ship To is extended in Services also.

Hence the Delhi Crane Service provder by providing services to third person in delhi on Direction of Mumbai Registered recepient can raise a IGST bill to Mumabi on module Bill To , Ship To

3 Like

Kutty Dhanush (other) (317 Points)
Replied 08 February 2019

But Pankaj Sir,

here the party remains same, no third person involved. Or Bill to Ship to to same purchaser.

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ACA Sarita Laddha (Practicing CA) (1225 Points)
Replied 08 February 2019

If it is related to immovable property, then place of service is delhi and CGST and SGST will be applicable.

Otherwise, IGST will be charged as service is provide in delhi on the direction of party registered in mumbai. Bill to and Ship to concept will be applied.

CA Akshay Hiregange (Partner - Audit & Assistance) (4515 Points)
Replied 08 February 2019

Answer by Ms. Afreen Fatima & Mr. Pankaj Rawat to be read together.

Could be either IGST or CGST+SGST. Please provide additional details of the activity.

Place of performance cannot be directly considered as place of supply. This is completely incorrect.

Place of supply for services is determined under Section 12 or 13 of IGST Act.

Nagabhushana Guntreddi (31 Points)
Replied 08 February 2019

If service receipient is registered at place of supply services within the state CGST+SGST applicable and show it in B2B section. otherwise treat this services as un-registered and show it in B2C section in GSTR-1