The place of supply provisions determines whether the supply transaction is Inter-State or Intra-State. Depending upon the type of transaction, the tax to be levied is either IGST or CGST and SGST/UTGST. Hence, every transaction involving supply of goods will have to go through the test of provisions relating to place of supply of goods in order to determine which tax is to be levied. Thus, under GST Regime, the place of supply is not only relevant for services but also for the supply of goods. In this article, we shall be discussing on provisions relating to place of supply for goods.
In GST, the manner in which a supply is to be determined as Inter-State Supply or Intra-State supply has been provided in the Integrated Goods and Service Tax Act, 2017.To determine whether a transaction is an Intra-State or Inter-State, we have to identify two aspects i.e., location of Supplier and the place of supply. Where the location of supplier and the place of supply is within the State/Union territory then the transactions is said to be an Intra-State transactions and where the location of supplier is in one State/Union territory and the place of supply is in another State/Union territory, then the transactions is said to be an Inter-State transaction. The Imports and Export transactions are always considered as Inter-State Supplies. Similarly, the supply to SEZ units or developer is always treated as Inter-State transaction even the location of supplier and place of supply are in same State.
