Dear Experts,
We are a PAN India organization. All the import transactions are centralized at Chennai (Tamilnadu). Rate of IGST payable for the services availed/paid in TN for the state of Maharasta or other Union Territories (recipients of the services) is 18% However, some service providers argue that as their services are availed and charges are paid in Tamil Nadu, they will charge CGST 9% and SGST 9%. Is their argument is right? If so, what is the IGST rule?
Pl. explain.
A.Manoharan
Dispute Over IGST vs. CGST/SGST for Services in Tamil Nadu Intended for Maharashtra, Clarified by Experts A PAN India organization centralized in Chennai questioned the applicability of IGST for services availed in Tamil Nadu but intended for Maharashtra. Service providers argued for charging CGST and SGST since both supplier and recipient are in Tamil Nadu, making it an intra-state supply. Experts clarified that IGST applies if the supplier invoices a GSTIN from a different state. Payment location is irrelevant for tax determination. Concerns were raised about Tamil Nadu issuing demand notices for SGST revenue. However, it was noted that IGST is shared between Central and State governments, reducing the risk of state-issued notices. (AI Summary)
TaxTMI 
TaxTMI 
