Place of Supply - Service

[KUMAR Narasimhan]

Dear Sir / Madam,

Mr A is a registered person in GST and did the Mould Design support from Chennai to Hyderabad. Mr B from Hyderabad is also a GST registered person.

Please clarify what tax rate to be charged in this case?

Mr A did the Mould Design in chennai and sent the information through email to Mr B.

[Shilpi Jain]

If its a mould design and not a job work then rate of tax is 18%.

So if no goods of the hyd party is given to the chennai registered person to work on, it will not be a job work

[KUMAR Narasimhan]

Dear Mam,

Thank you for the information!

Please clarify whether it's C+S or IGST. MR A does all the services in Chennai related to Mould design and sent the drawing through email to Mr B.

[Ganeshan Kalyani]

Sir, in my view it is IGST.

[Shilpi Jain]

Yes as per 12(2) of IGST Act it would be igst. Why is this doubt though?

This is not a case of developing the mould and sale or job work right?

[KASTURI SETHI]

I think the querist is in a quandary because it is inter-state online supply rather than physical supply.

[KUMAR Narasimhan]

Dear Sir / Madam,

As said by Mr Kasturi ji the confusion for me is the service is done by Mr A at Chennai and it is supplied through email to Mr B. The Actual service is done at Chennai, so my question whether to treat the service as C+S or IGST

[KASTURI SETHI]

IGST is applicable.

[Ganeshan Kalyani]

The location to supplier is Tamil Nadu and recipient is in Telangana. Two different states, so IGST.

[KASTURI SETHI]

Yes. Also invoiced outside State.

[KASTURI SETHI]

Service supplied to B at Hyderabad and consideration accounted for in the books of accounts (statutory records) at Hyderabad and invoice addressed to B at Hyderabad. Hence IGST, it being inter-State supply.

AI Summary

Inter-state supply IGST applies for mould design services sent electronically across states; standard service tax rate applies. Mould design services performed in Chennai and transmitted by email to a Hyderabad-registered recipient, where no recipient goods were sent for job work, constitute an inter-state supply attracting IGST under section 12(2) of the IGST Act and are taxable at the standard rate identified by respondents.