CS Venkatesh Maheshwari (Tax Consultant) (35 Points)
05 June 2018Whether to charge IGST or CGST/SGST for specific service provided
Mr. A regiesterd dealer (M.P.) provides repair of vechicle service to Mr. B registered dealer (Haryana, Freigt Crarrier) at his workshop in M.P. as his vechile has got breakdown in M.P.
What will be the place of supply of service, and what would Mr. A Charge in Bill i.e. IGST or CGST/SGST
CA Padmasri Manyam
(CA in Practice)
(1340 Points)
Replied 05 June 2018
The activity of repair services is not covered under any specifc provisions under place of supply of service. Therefore, the place of supply of service shall be the location of the recipient (defalut provision).
Location of supplier - M.P
Place of supply i.e. Location of recipient - Haryana
Both are in different states. Hence, IGST has to be charged.
Kartikey Jain
(Intern)
(2382 Points)
Replied 05 June 2018
This situation will be covered under the general/residual clause of Section 12
So if service if provided to a :
1) Registered Person --> POS shall be location of receipient
2) Unregistered Person --> Location of receipient (if address exists on the record) or Location of suppler (in other cases)
As per facts of the case, since the receipient Mr B is registered, POS shall be Haryana and since Location of supplier and POS are different, IGST shall be charged in the invoice.
CS Venkatesh Maheshwari
(Tax Consultant)
(35 Points)
Replied 05 June 2018
But as per GST :-
the goods/services will be taxed at the place where they are consumed and not at the origin. So, the state where they are consumed will have the right to collect GST.
So as per case service is consumed in M.P.
CA Padmasri Manyam
(CA in Practice)
(1340 Points)
Replied 05 June 2018
Though the fundamental concept of GST is consumption based taxation. It fails in many cases, above situation is one among them.
GST LIVE Certification Course - 42nd Weekend Batch(With Govt Certificate)
CAclubindia
