What is the relevance and need for determining place and supply?

A) Place of Supply is very important to determine whether a transaction is a intra-state sale or inter-state sale. And accordingly SGST, CGST & IGST will be determined. Where the supply involves no movement of goods– Place of Supply shall be the location of such goods at the time of the delivery to the recipient.

What is the need for determination of place of supply under GST?

The purpose of the place of supply provisions is two-fold: 1) In case of cross-border transactions, to determine whether tax is to be levied on a particular transaction 2) In the case of domestic transactions, to determine whether a particular transaction is an inter-state supply or an intra-state supply.

What do u mean by place of supply of goods and services?

In simple terms, Place of supply means the place where a supply of goods or services is made & where the GST may be charged or paid. In some cases place of supply is determined by what is supplied rather than where the supplier or consumer belongs.

What determination for place of service is important in respect of goods as per section 10 of the IGST Act 2017?

(2) Where the place of supply of goods cannot be determined, the place of supply shall be determined in such manner as may be prescribed. Analysis- Place of supply of goods, where the supplier and the recipient are both located within India, will be determined in accordance with section 10 of the IGST Act.

How the place of supply is determined where the location of supplier or location of recipient is outside India?

General rule: If recipient is registered then POS is the location of such recipient. If recipient is unregistered then POS is the address of such unregistered recipient in case if address is unavailable then location of the supplier is the POS.

How is GST determined?

GST can be calculated simply by multiplying the Taxable amount by GST rate. If CGST & SGST/UTGST is to be applied then CGST and SGST both amounts are half of the total GST amount. For example, GST including amount is Rs. 525 and GST rate is 5\%.

What is supply under GST explain with example?

What is supply under GST? Supply includes sale, transfer, exchange, barter, license, rental, lease and disposal. If a person undertakes either of these transactions during the course or furtherance of business for consideration, it will be covered under the meaning of Supply under GST.

What is the meaning of the place of supply and what is the need to determine the place of supply in respect of goods and services elaborate along with suitable examples?

When the seller knows the ‘time’, it helps him identify due date for payment of taxes. CGST/SGST or IGST must be paid at the time of supply. Goods and services have a separate basis to identify their time of supply. Let’s understand them in detail.

How the place of supply of goods is determined?

Place of supply of goods under GST defines whether the transaction will be counted as intrastate or interstate, and accordingly levy of SGST, CGST & IGST will be determined….Place of Supply – No Movement of Goods.

How do you determine the nature of intrastate and interstate supply of goods and services?

Section 7, 8 and 9 of the IGST deals with the transactions to be treated as Inter-State Supply. Supply of goods where the location of the supplier and the place of supply of goods are in the same State or same Union territory shall be treated as intra-State supply.

Why is IGST mechanism needed?

IGST is a mechanism to monitor the inter-State trade of goods and services and ensure that the SGST component accrues to the consumer State. It would maintain the integrity of ITC chain in inter-State supplies. IGST would be levied by the Central Government on all inter-State transactions of taxable goods or services.