Applicablity of CGST & SGST

[Narendra Soni]

Dear Experts,

Please confirm whether CGST or SGST or Both are applicable in the below two conditions, when :-

1. The supplier and the recipient are both located within the State.

OR

2.The supplier and the recipient are located in different States.

[Rajagopalan Ranganathan]

Sir,

If supplier and the recipient are located within the State then CGST or SGST as the case may be, are applicable.

If the supplier and the recipient are located in different States then IGST (Integrated goods and Service Tax) is applicable.

[Narendra Soni]

Sir

Im your reply,unable to understand " CGST or SGST as the case may be, are applicable." Please explain the cases.

[Ganeshan Kalyani]

In my view both CGST and SGST shall be applicable in situation 1 & IGST in case of interstate supply .

[Narendra Soni]

Sir

please refer to answer to FAQ no.10 released by Empowered committee,"location od supplier and recipient is immaterial for CGST,white SGST is applicable if both are located in the same state".

kindly explain

[Narendra Soni]

Dear TMI experts,

Please explain the query with reference to below:-

Please refer to answer to FAQ no.10 released by Empowered committee,"while the location of the supplier and the recipient within the country is immaterial for the purpose of CGST, SGST would be chargeable only when the supplier and recipient are both located within the state".

Kindly explain.

[Narendra Soni]

Can any expert/ TMI expert explain the below :-

Please refer to answer to FAQ no.10 released by Empowered committee,"while the location of the supplier and the recipient within the country is immaterial for the purpose of CGST, SGST would be chargeable only when the supplier and recipient are both located within the state".

[Ganeshan Kalyani]

Central levy is subsumed into CGST and state levy is subsumed into SGST . the central levy is applicable on intra state transaction as CGST and the same is applicable on inter state transaction as IGST . therefore , in my view the meaning of the sentence in the query id 10 of FAQ is that party supplying and receiving should be within state for SGST and the location of both the supplier and receiver of goods is immaterial.

[Ganeshan Kalyani]

Pls continue reading....

for CGST .

[Narendra Soni]

Thanks Mr. Kalyani,

"location of both the supplier and receiver of goods is immaterial for CGST", it means in any supply whether intra state or inter state CGST is applicable ??? Being IGST is applicable on inter state supply then whether both CGST and IGST simultaneously applicable on every inter state supply ??.

Please clarify.

[DR.MARIAPPAN GOVINDARAJAN]

In the Qn. No. FAQ referred to you it has been mentioned that while the location of the supplier and the recipient within the country is immaterial for the purpose of CGST, SGST would be chargeable only when the supplier and the recipient are both located within the State. It has been clarified that for the purpose of levying CGST the location of the supplier and receiver is immaterial. But for the purpose of SGST the supplier and the recipient are both located within the State. If the supplier and the recipient are located in different states. IGST would attract.

[Narendra Soni]

Dear Mr.Govindarajan,

Kindly advice,As per your reply,it means:

In Intra State supply:- Both SGST & CGST are payable.

In Inter State supply:- Both IGST and CGST is Payable.

In other words, CGST is payable in all supplies whether it is Inter state or Intra state, SGST is payable only in Intra state supply and IGST is payable in Inter state supply. In case of export only IGST is applicable.

Am I correct ??

Kindly revert.

[Ganeshan Kalyani]

In my view your view is not right.

[Narendra Soni]

Dear Mr.Govindarajan,

As per Mr.Kalyani, the view is not correct,

Any expert, if can solve the issue.

[Ganeshan Kalyani]

Dear Soni Ji,

To put it in simple way is - CGST and SGST is applicable on intra state transaction and IGST is applicable on interstate transaction . IGST is Central Government levy and IGST is also a central government levy. therefore it can be said that CGST and IGST are same. therefore the act states that for CGST the location of both supplier and purchaser is irrelevant. but for SGST both the both the party should be with the state.

[Ganeshan Kalyani]

Pls read second sentence as " IGST is Central Government levy and CGST is also a central government levy".

[Dilip Kumar]

The only difference between CGST and IGST is that the state has a right on IGST to the extent it is utilised to pay SGST.

AI Summary

Understanding CGST, SGST, and IGST: Intrastate vs. Interstate Transactions Explained A discussion on the applicability of Central Goods and Services Tax (CGST), State Goods and Services Tax (SGST), and Integrated Goods and Services Tax (IGST) in different scenarios. When both supplier and recipient are within the same state, CGST and SGST are applicable. For interstate transactions, IGST applies. There is confusion about whether CGST applies to all transactions, with some participants clarifying that CGST and SGST are for intrastate transactions, while IGST is for interstate. The distinction is made that CGST and IGST are central levies, with SGST being state-specific. The forum seeks further clarification on these tax applications.