Key Topics:

• DIRECT TAX
• AUDIT
• IDT/GST

Key Topics:

• INTERNATIONAL TAXATION
• DIRECT TAX
• GST

Read more: AAR Summary - EMC Limited

By this time, the entire trade has understood the concept of inter and intra state supplies and happily charging the applicable taxes. Needless to say, if a supply is an intra-state, Central Goods & Services Tax (CT) and State Goods & Services Tax (ST) shall be applicable and if the supply is inter-state, then integrated tax (IT) shall be applicable. Arithmetically, IT is nothing but a summation of CT and ST.

There are sections which determines the nature of supply as inter and intra. Section 7 of Integrated Goods 

• Services Tax Act, 17 (IGST Act) deals with the inter-state supply, where in it states, if the location of supplier and place of supply are in two different states, two different union territories and a state and a union territory, then such supply is to be treated as inter-state supply. Apart from the above, the section also lays down specific transactions which are to be treated as inter-state supply, which we shall discuss in the later part of this article.

In similar way, Section 8 of IGST Act deals with intra-state supply, where in it states, if the location of supplier and place of supply are in the same state or union territory then such supplies shall be treated as intra-state supplies. Further, Section 8 also lays down certain specific instances, where in such transactions are not to be treated as intra-state supply. 

Read more: Section 7 v/s Section 12 of IGST Act