Place of Supply of Goods And Services Under GST

  • Blog|GST & Customs|
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  • By Taxmann
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  • Last Updated on 25 June, 2021

Under an Ideal Taxation system, tax shall only form part of the cost when the goods or services reach the final consumer and businesses should be allowed a credit of whatever taxes they have paid unless the goods or services supplied by them are exempt from levy of tax or not liable to be taxed.

What is the place of supply under GST and how and when SGST/CGST/UTGST/IGST would be levied in case of a supply of goods or services or both? 

Determination of place of supply would decide whether the registered person has to charge CGST/SGST/UTGST/IGST. If the supply of goods or services or both happen to be an Intra-State Supply or a supply within a Union territory, then, in such case supplier would have to charge CGST/SGST or CGST/UTGST.

However, if the supply happens to be an Inter-State Supply or a supply between two Union territories or between a Union territory and a State, then IGST would be leviable on the supply of goods or services or both.

Value of Supply of goods or services under GST: 

Value of Supply in common terms is nothing but the amount paid by the recipient of supply to the supplier as consideration for the supply.

Valuation rules would determine the value of goods or services or both on which tax under GST would have to be charged. Valuation rules have been prescribed under GST for the purpose of determining of the fair market value of goods or services or both supplied by the registered person.

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