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Query on place of supply and location of supplier

Ramesh Babu (GM - Accounts) (30 Points)

13 September 2022

A company has an office in Andhra Pradesh and plans to build a corporate office in Tamil Nadu, for which they have hired a Tamil Nadu engineer. He will provide his services and goods from his office in Tamil Nadu.

for engineer, is it intra state supply or interstate supply

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5 Replies

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 14 September 2022

As per Section 12(3) of IGST Act , the place of supply for engineering services in relation to construction of office will be Tamil Nadau , hence CGST/SGST is applicable.
In case of Supply of goods it can made under bill to Ship to Model under section 10(1)(b) , the IGST will be applicable.

But since you have not clear in your query that including engineer services, the construction services are also given by the engineer then the whole services will be cover under construction services & Section 12(3) going to be invoke, in that case CGST/SGST will be applicable on the whole contract.

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Ramesh Babu (GM - Accounts) (30 Points)
Replied 14 September 2022

Mr. Pankaj, thank you so much. The engineer has agreed to carry out the material and labour contract.

Ramesh Babu (GM - Accounts) (30 Points)
Replied 14 September 2022

Can you please advice how to raise invoice. Is it under bill to ship to model, mentioned both GST numbers but only charging CGST & SGST . Right

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 14 September 2022

IF ENGINEER IS GOING TO RAISE THE BILL FOR CONSTRUCTION (INCLDS MATERIALS) THEN HE CANNOT CHARGE IGST IN THAT CASE.

SO CGST/SGST IS APPLICABLE.

"BILL TO,SHIP TO" MODEL IS APPLICABLE ONLY, IF VENDOR (GOODS/MATERIAL) IN TAMIL NADU DIRECTLY RAISE THE BILL TO YOU IN ANDHRA PARDESH. BUT SINCE YOU HAVE GIVEN CONTRACT TO ENGINEER WITH MATERIAL IN THAT CASE THE ENGINEER WILL DEFINATELY TAKE THE BILL FROM VENDOR IN HIS OWN ACCOUNT & FURTHER HE WILL RAISE BILL FOR CONSTRUCTION TO YOU.