Nature of Supply under GST: Inter State, Intra State Supply

Nature of Supply under GST: GST is a location based tax i.e usage tax, which suggests tax will be levied where products and services are taken in and will accumulate to that state thus, it is of immense significance that the place of supply of any deal is identified properly. To identify the appropriate location of supply, it is important that the nature of supply be understood. Following table list arrangements as included in IGST Act, 2017, to know whether a supply will be treated as Inter State or Intra State supply.

Nature of Supply under GST

The following services will be treated as inter state supply:

in the taxable territory, not being an intra-State supply and not covered elsewhere in this section

Inter State Supply (Sec 7)
Supply of Goods Services
Location of the provider and the place of supply are in two various States;–

2 various Union areas; or a State and a Union area

two different States;-LRB- .

2 various Union territories; or a State and a Union area

Import till they cross the customizeds frontiers of India No specific requirement (all services imported will be dealt with as inter state supply)
supplier located in India and the place of supply is outside India
to or by a Special Economic Zone designer or a Special Economic Zone unit
in the taxable territory, not being an intra-State supply and not covered elsewhere in this area

The following products will be treated as intra state supply:

Intra State Supply (Sec 7)
Supply of Goods Services
Location of the supplier and the place of supply remain in Same State or Same Union territory very same State or very same Union area
Following will not be thought about as Intra State Supply
  • supply of products to or by a Special Economic Zone designer or a Special Economic Zone system
  • products imported into the territory of India till they cross the customizeds frontiers of India
  • materials of items made to a traveler as referred to in Section 15

Following will be treated as establishments of unique individuals:

  • an establishment in India and any other facility outside India;-LRB-
  • a facility in a State or Union area and any other facility outside that State or Union area; or
  • an establishment in a State or Union territory and any other facility being an organization vertical signed up within that State or Union territory

An individual continuing a business through a branch or a firm or a representational office in any area shall be treated as having a facility because territory

Recommended Articles

  • FAQ on Electronic Commerce
  • FAQ on Input Tax Credit
  • FAQ on Job Work
  • FAQ on Concept of Input Service Distributor
  • FAQs on Returns Process & matching
  • FAQ on Assessment and Audit
  • FAQ on Refunds
  • Company Secretary
  • FAQ on Demands & Recovery
  • GST Questions Related to Mining service
  • GST Questions Related to Food Processing

Leave a Reply