FAQ’s on Supply of goods and / or service in the IGST Regime. Supply of goods and / or service in the course of inter-state trade or commerce. FAQs on Supply of goods and / or service Under IGST. Finance Ministry Release Various FAQs on IGST, Here we are providing FAQs on Supply of goods and / or service under Goods and Service Tax Law. Check Various Question and Answers on Supply of goods and service. Now scroll down below n check more details for “FAQ on Supply of goods and / or service under IGST.”
FAQ’s on Supply of goods and / or service in the IGST Regime
Q 1. When is supply of goods considered as supply in the course of inter-State trade or commerce?
Ans. Supply of goods will be considered as inter-State supply, if the location of the supplier and place of supply are in different States. This is subject to the provisions contained in section 7 of the Revised Model IGST Law.
Q 2. When is supply of services considered as supply in the course of inter-State trade or commerce?
Ans. Supply of services will be considered as inter-State supply, if the location of the supplier and place of supply of the service are in different States. This is subject to the provisions contained in section 9 of the Revised Model IGST Law.
Q 3. What is the meaning of location of supplier?
Ans. Location of supplier of goods: The term location of supplier of goods has not been defined in the Revised Model IGST Law. Therefore, the location of goods may have to be considered as the location of supplier since every taxable person is required to take registration and pay tax the in respect of every taxable supply; thus ‘location of goods’ becomes the ‘location of supplier.
Location of supplier of service: Location of supplier of service is defined under section 2(18) of the Revised Model IGST Law as under:
- (a) where a supply is made from a place of business for which registration has been obtained, the location of such place of business;
- (b) where a supply is made from a place other than the place of business for which registration has been obtained, that is to say, a fixed establishment elsewhere, the location of such fixed establishment;
- (c) where a supply is made from more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the provision of the supply; and
- (d) in the absence of such places, the location of the usual place of residence of the supplier
Q 4. Whether Supply of goods in the course of import into India be treated as inter-State trade or commerce and what is the place of supply of goods in the course of import into India?
Ans. Supply of goods in the course of import into the territory of India till the goods cross the customs frontiers of India will be treated as inter-State trade or commerce, therefore exigible to IGST.
Further, Customs frontiers of India means the limits of the area of a customs station as defined in section 2 of the Customs Act, 1962 (52 of 1962) in which imported goods are ordinarily kept before clearance by customs authorities.
Furthermore, Customs station is defined under section 2 of the Customs Act, 1962 to mean any customs port, customs airport or land customs station.
Moreover, Section 8 of the Revised Model IGST Law provides that the place of supply of goods imported into India shall be the location of the importer.
Q 5. Whether the goods supplied from custom bonded warehouse is considered as supply in the course of import into India?
Ans. Goods kept in customs bonded warehouse are goods pending clearance by the customs authorities and hence would be considered as lying outside the customs frontiers of India. Therefore, goods supplied from custom bonded warehouse would be considered as supply in the course of import into India and treated as supply in the course of inter-State trade or commerce.
Q 6. Whether IGST will apply on supply of service in the course of import into India? What will be the place of supply in such case? Give Example
Ans. Supply of service in the course of import into the territory of India will be treated as supply in the course of inter-State trade or commerce is liable to IGST. Further, Section 10 of the Revised Model IGST Law provides the place of supply where the location of the supplier or the location of the recipient is outside India. Hence, the place of supply in case of supply of service in the course of import into India is to be determined in terms of Section 10 thereof.
Example – Annual maintenance contract entered by a Company outside India for maintenance of goods located in India.
Q 7. What is the place of supply if the supplier of goods is in Bangalore and the recipient of goods being an SEZ unit, is also in Bangalore?
Ans. Supply of goods to or by an SEZ developer or an SEZ unit, shall be deemed to be a supply of goods and/or services in the course of inter -state trade or commerce. The location of the supplier or recipient is irrelevant. In the given case though the supplier and recipient are located in the same State (i.e. Karnataka), the place of supply of goods to a SEZ unit will be treated as inter-State supply.
Further, in terms of Section 8 of the Revised Model IGST Law, the place of supply of goods exported from India shall be location outside India, and supply to SEZ being deemed export, place of supply in the instance case will be where recipient of goods being an SEZ unit is located.
Supplies of goods and/or services in the course of intra-State trade or commerce
Q 9. When is supply of goods considered as supply in the course of intra-State trade or commerce?
Ans. Supply of goods will be considered as intra-State supply, if the location of the supplier and place of supply are in the same State. This is subject to provisions contained in section 7 of the Revised IGST Law.
Further, intra-State supply of goods shall not include supply of goods to or by a SEZ developer or to or by an SEZ unit and supply of goods brought into India in the course of import till they cross the customs frontiers of India
Q 10. When is supply of service considered as supply in the course of intra-State trade or commerce?
Ans. Supply of service will be considered as intra-State supply if the location of the supplier and place of supply are in the same State. This is subject to provisions contained in section 9 of the Revised Model IGST Law.
Further, intra-State supply of services shall not include supply of services to or by a SEZ developer or to or by an SEZ unit
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