gst on services etc

[Madhavan iyengar]

A company X based in gujarat sold its product to a customer Y in Tamilnadu

The customer Y raised a complaint on X

X asked Y to contact its dealer Z in Tamilnadu

Z sent its technician and repaired the product

Z of Tamil nadu then raised its bill on X of Gujarat

In this case Z has to charge which tax on X

[Rajagopalan Ranganathan]

Sir,

Since the service provider (Z) and service receiver (Y) are both located in the same state CGST and SGST is payable the service provider. However X cannot avail credit of input tax since he is located in gujarat since credit of CGST and SGST can be availed within thestate where such service has benn consumed. This is my opinion.

[KASTURI SETHI]

In my view, X is, de fecto, service receiver. Z is service provider. Z has acted for and on behalf of X. The situation is covered under Section 12 (2)(a) of IGST Act, 2017. Hence IGST is applicable.

AI Summary

IGST applicability questioned for cross state repair services, contrasting IGST treatment with CGST and SGST invoicing consequences. A Gujarat seller's customer in Tamil Nadu obtained repair by a Tamil Nadu dealer who billed the seller. One view treats the repair as an intra state supply between dealer and customer, requiring CGST and SGST and limiting credit for the out of state seller. The alternate view treats the seller as de facto recipient with the dealer acting on its behalf, invoking IGST treatment.