Rate of IGST for Interstate services

[MANOHARAN ARUMUGAM]

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

AI Summary

Inter-state supply: IGST applies where supplier and recipient are in different states; intra-state attracts CGST and SGST.
Where supplier and recipient are in different States or Union territories the supply is an inter state supply and IGST applies; where both are in the same State or Union territory it is an intra state supply and CGST plus SGST apply. Payment location or which office makes payment does not determine tax treatment; the invoice and the GST registration/location of the recipient govern whether IGST may be charged.