Scribd
Upload
1K views1 page

IGST Act: Nature & Place of Supply Explained

The Integrated Goods and Services Tax Act, 2017 outlines the determination of the nature and place of supply for inter-State transactions to ensure correct tax application. It distinguishes between inter-State and intra-State supplies and specifies rules for determining the place of supply for both goods and services. Relevant case laws illustrate the application of these provisions and emphasize the importance of accurate tax jurisdiction to prevent double taxation.

Uploaded by

jeevithjain80
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
1K views1 page

IGST Act: Nature & Place of Supply Explained

The Integrated Goods and Services Tax Act, 2017 outlines the determination of the nature and place of supply for inter-State transactions to ensure correct tax application. It distinguishes between inter-State and intra-State supplies and specifies rules for determining the place of supply for both goods and services. Relevant case laws illustrate the application of these provisions and emphasize the importance of accurate tax jurisdiction to prevent double taxation.

Uploaded by

jeevithjain80
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Provisions Relating to Determination of Nature of Supply and

Place of Supply under the IGST Act, 2017

Introduction:
The Integrated Goods and Services Tax Act, 2017 governs inter-State supplies of goods
and services. Determining the nature and place of supply is essential to decide whether
IGST or CGST + SGST applies, ensuring correct tax levy and credit flow.

1. Nature of Supply:
• Section 7 – Inter-State Supply: Supplier and place of supply are in different States;
also includes supplies to or by SEZs, and imports/exports.

• Section 8 – Intra-State Supply: Supplier and place of supply are in the same State or
Union Territory (excluding SEZ transactions, imports, and exports).

• Section 9 – Supplies in Territorial Waters: Supply within territorial waters is deemed


to be in the nearest coastal State or Union Territory.

2. Place of Supply:
(a) For Goods (Sections 10–11):

• Movement of goods – Place where delivery ends.

• No movement – Location of goods at delivery.

• Third-party direction – Principal place of third person.

• Imports – Location of importer; Exports – Outside India.


(b) For Services (Sections 12–13):

• Within India – Place of recipient, or supplier if recipient location unknown.

• Outside India – Location of recipient; immovable property services – property location.

• Online database and access services – Recipient’s location.

3. Case Laws:
• Mohit Minerals Pvt. Ltd. v. Union of India (2022): Held that double IGST on ocean
freight is invalid as importer already pays IGST on CIF value.

• Union of India v. Intercontinental Consultants (2018): Only consideration for actual


service should be taxed; clarified determination principles.

Conclusion:
Determining the nature and place of supply ensures correct tax jurisdiction, avoids double
taxation, and provides uniform revenue distribution between Centre and States under the
GST regime.

You might also like