Type of tax payable

[Kaustubh Karandikar]

XYZ, UK exported the goods to a customer in West Bengal. Subsequently, some repair was required to be carried out on these goods. On the instructions of XYZ, PQR, Maharashtra had carried out these repairs at West Bengal and amount for the same was recovered from XYZ.

1) PQR will be required to pay IGST since PQR is in Maharashtra and services are performed in West Bengal.

2) But if service are performed in Maharashtra, PQR to pay CGST+ SGST. Kindly confirm.

AI Summary

Place of supply rule: IGST applies when supplier and recipient are in different states, regardless of service performance location.
The place of supply for the repair service is the location of the recipient; where supplier and recipient are in different states, the transaction is an interstate supply and IGST is leviable irrespective of the physical location where the services are performed.