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GST is an Indirect Tax which has replaced many Indirect Taxes in India. The Goods and Service Tax Act was passed in the Parliament on 29th March 2017. The Act came into effect on 1st July 2017; Goods & Services Tax Law in India is a comprehensive, multi-stage, destination-based tax that is levied on every value addition.
In simple words, GOOD SERVICE TAX (GST) is an indirect tax levied on the supply of goods and services. This law has replaced many indirect tax laws that previously existed in India.
GST is one indirect tax for the entire country.
GST is an Indirect Tax which has replaced many Indirect Taxes in India. The Goods and Service Tax Act was passed in the Parliament on 29th March 2017. The Act came into effect on 1st July 2017; Goods & Services Tax Law in India is a comprehensive, multi-stage, destination-based tax that is levied on every value addition.
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GST Interstate vs Intrastate Supply Meaning
In GST, the terms interstate and intrastate have tremendous significance in the determination of IGST, CGST or SGST. Interstate supply attracts IGST, while intrastate supply attracts CGST and SGST. In this article, we look at the definition of interstate supply and intrastate supply as per the GST Act.
What is Interstate Supply?
Under GST, a supply of goods or services from one state to another would be called as interstate supply. The GST Act defines interstate supply as when the location of the supplier and the place of supply for the customer are in:
- Two different States; or
- Two different Union territories; or
- State and a Union territory.
In addition to the above, the supply of goods imported into India, till they cross the customs station is also classified as interstate supply. Also, supply of goods or services to or by a Special Economic Zone developer or a Special Economic Zone unit is classified as interstate supply.
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What is Intrastate Supply?
Under GST, a supply of goods or services within the same state or Union territory is called a intrastate supply. However, a supply of goods or services to a Special Economic Zone developer or Special Economic Zone unit situated within the same state would not be intrastate supply. As any supply of goods or services to a Special Economic Zone developer or Special Economic Zone unit is classified as interstate supply
GST Interstate vs Intrastate Supply
Under GST, interstate supply attracts Integrated Goods and Services Tax or IGST. Intrastate supply attracts both Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST). In the case of intrastate supply, the GST rate for the goods or services would remain the same. However, the GST rate and tax amount are divided equally into the two heads namely SGST and CGST.
GST COMPUTATION & ACCOUNTING
Inter-state sales purchase IGST Computation
Adjustment of IGST With CGST, SGST Credit Examples given below
Example No: 6
Example 7
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1 Comments
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