Charge of Tax

[DURGADUTT DUBEY]

X of West Bengal gets order from a German company to deliver goods to Y of UP. As in this case goods are not going outside India it is not an export. But what tax 'X' is required to charge in his bill i.e whether he will apply CGST + SGST or IGST as the movements of goods is terminating in UP. Please advice.

AI Summary

IGST Applies to Transactions Involving West Bengal Supplier and German Company with Goods Terminating in Uttar Pradesh. A discussion on the applicable tax for a transaction involving a West Bengal supplier, a German company, and a recipient in Uttar Pradesh. The main question is whether Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST) or Integrated Goods and Services Tax (IGST) should be applied since the goods do not leave India. Multiple contributors, including Kasturi Sethi and Rudradutt Saxena, conclude that IGST is applicable. They reference sections of the IGST Act, suggesting that the place of supply is determined by where the goods terminate, which is Uttar Pradesh, making IGST the correct tax.