Important Definitions Under IGST OR Principles under IGST

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IGST: Integrated Goods & Service Tax concept introduced in India for Taxability on interstate movement of goods & services & transfer of same with Tax invoice to continue ITC chain or not to break seamless flow of credit which is Basic Objective of GST. Now check more details for “Important Definitions Under IGST OR Principles under IGST” from below

Important Definitions Under IGST

Important Definitions Under IGST

Following Principles used for determining interstate supply of goods and /or services are as under.

  1. Interstate Supply of goods means(subject to section- 7) : any supply where location of suppliers & place of supply are in different state
  2. Interstate supply & service means (subject to section -9): any supply where location of suppliers & place of supply are in different state
  3. 3&4 Supply of goods or services in course of import into territory of India shall be deemed to be supply of goods /services in the course of interstate trade or commerce.
  4. Supply of goods /service:-When supplier is India & POS is out Side India.
  5. Supply of goods /service :- To or by SEZ Developer / unit
  6. Any supply not intrastate :- Deemed to interstate supply

Section 8 :

Fixed Establishment : Means place other than place of Business which is characterized by sufficient degree of permanence & suitable structure in terms of human & Technical resources to supply service or to use service

Location of recipient of service Means – Section 2( 17)

Scenario Location of recipient of service Example/Case Study
  • Where supply is received at a place of business for which registration has been obtained
  • Where supply is received other than the place of business for which registration obtained i.e. fixed establishment
  • Where supply is received at more then one establishment
  • In absence such place
  • The location of such place of business
  • Location of such fixed establish
  • Location of establishment must directly concerned
  • Usual place of residence
  • If received at registered premises/ factory location of registered factory
  • If received at pump house/township
    than location of pump house /TS
  • Multiple marketing offices situated
    in multiple states
  • Registered office /Ho of co.

7. Location of suppliers of service:- Section 2 (18) Above same principle will apply for location of supplier of services also.

In short we can make simple rule to understand above

  1. Place of Business for which registration obtained – Factory /Registered premises
  2. Other than place of business at fixed establishment – Pump house/township
  3. More than one establishment – multiple sales / offices – directly concerned
  4. Residual cases – Registered office /Head offices

 

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Check Also:

GST Rates Decided on Certain Goods and Services on 18th June 2017

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