Q. No.1. What is the need for the place of supply of goods and services under GST?

Ans. The basic principle of GST is that it should effectively tax the consumption of supplies at the destination or at the point of consumption. So place of supply provision determines the place i.e. whether a transaction is intra-state or inter-state. In other words, the place of Supply of Goods is required to determine whether a supply is subject to SGST plus CGST in a given State or would attract IGST if it is an inter-state supply.

If the supplier of goods or services and place of supply of goods or services are located in same State, then CGST and SGST is payable. SGST of that state is payable, when supplier and place of supply is in one state. However, if the supplier and the place of supply are located in different States, then IGST is payable.

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One Comment

  1. CA.Kolanjivel.V M.Com., FCA., ACS., CMA., LL.B., says:

    I read all the FAQ of place of supply of goods and service. It was very nice and useful. Thanks for educating us.

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February 2024