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Direction to mention the place of supply along with the name of the State for Inter-state supply to all dealer especially to the banking, insurance and telecom sectors

Direction to mention the place of supply along with the name of the State for Inter-state supply to all dealer especially to the banking, insurance and telecom sectors

It is mandatory to specify the place of supply along with the name of the State in the tax invoice for Inter-state Supply. 

GST is a destination-based consumption tax and therefore the tax paid by a registered person accrues to the State where goods or services are consumed. For Inter-state supply of goods or services, this is ensured by capturing the details of the place of supply along with the name of the State in the tax invoice.

Therefore, vide circular # 90/09/2019 – GST dated 18th February, 2019, CBIC has instructed that all taxpayers making inter-state supply of goods or services shall specify the place of supply along with the name of the State in the tax invoice.

Place of supply may be learned from the Section 10 and Section 12 of IGST Act, 2017.

In case of default in mentioning the place of supply along with the name of the State in the tax invoice, following penalties may be levied:

  1. A penalty of ten thousand rupees for every default as per Section 122 of CGST Act, 2017.
  2. A penalty upto twenty-five thousand rupees for every default as per Section 125 of CGST Act, 2017.
Summary
Article Name
Direction to mention the place of supply along with the name of the State for Inter-state supply to all dealer especially to the banking, insurance and telecom sectors
Description
GST is a destination-based consumption tax and therefore the tax paid by a registered person accrues to the State where goods or services are consumed. For Inter-state supply of goods or services, this is ensured by capturing the details of the place of supply along with the name of the State in the tax invoice.
Author
Publisher Name
UnboxGST.com
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