INTRODUCTION:
- On 01.02.2019, the amendments made to Goods & Services Tax (GST) laws vide Central Goods and Services Tax (Amendment) Act, 2018 are made effective. One of the amendment relates to determination of place of supply for transportation of goods. Though, it was clarified that the purpose of this amendment is to grant relief to taxpayers, the manner in which the amendment was brought in does not legally assure such relief. In this article, we are going to discuss this issue.
LEGAL POSITION:
Pre-Amendment Position:
- Section 5 of Integrated Goods and Services Tax Act, 2017 (hereinafter referred to as ‘IT Act’) provides for levy and collection of Integrated tax (IT) on all the inter-state supplies, that takes place in case of goods or services or both, whether by way of forward charge or reverse charge. Similarly, with respect to intra-state supplies, section 9 of Central Goods and Services Tax Act, 2017 (hereinafter referred to as ‘CT Act’) read with section 9 of respective State Goods and Services Tax Act, 2017 (hereinafter referred to as ‘ST Act’) shall provide for payment of Central Tax (CT) and State Tax (ST) for intra-state supply of goods or services or both whether by way of forward charge or reverse charge.
Read more: GST Applicability on GTA services, where POS is outside India