IGST OR CGST AND SGST

[PAWAN BANSAL]

We registered at west bengal have provided services as referral fee at West Bengal to one of our customer whose is registered at Delhi. What should we charge..?

IGST OR CGST AND SGST?? Please give your valuable views. Thanks

[Rajagopalan Ranganathan]

Sir,

According to Section 12 (2) (a) of IGST Act, 2017 "the place of supply of services made to a registered person shall be the location of such person. In your case the recipient is located at Delhi, you are liable to pay IGST since the supply of service is inter-state supply though the service is provided within West Bengal.

[KASTURI SETHI]

IGST is applicable.

[Ganeshan Kalyani]

IGST is applicable.

AI Summary

Place of supply to registered person: IGST applies where the recipient is located in a different state.
Place of supply for services to a registered person is the location of that recipient; where the recipient is in a different state from the supplier the supply is an inter-state supply and IGST applies. Thus a supplier in West Bengal providing a referral-fee service to a registered recipient located in Delhi must charge IGST rather than CGST and SGST.