TaxTMI 
TaxTMI 
We would like to send an invoice to a client located in a different state for CMO services received from a local vendor, for which we have already been charged CGST and SGST. Can we charge the client IGST? Is it legal to do so?
Chargeability of GStT on invoice
09 Nov 2024 
10 Replies 
1340 Views Asked by
Place of supply determines IGST applicability; charge IGST for interstate supplies regardless of input CGST/SGST paid.
Charge of IGST on an outward supply is governed by the place of supply and the supplier's role, not by GST paid on inputs. If the respondent makes an interstate supply, the respondent should charge IGST; if the local vendor made the onward interstate supply, the vendor must charge IGST. CGST/SGST paid on locally procured services constitutes a separate transaction and does not determine whether IGST applies to the subsequent interstate supply. (AI Summary)
Charge of IGST on an outward supply is governed by the place of supply and the supplier's role, not by GST paid on inputs. If the respondent makes an interstate supply, the respondent should charge IGST; if the local vendor made the onward interstate supply, the vendor must charge IGST. CGST/SGST paid on locally procured services constitutes a separate transaction and does not determine whether IGST applies to the subsequent interstate supply. (AI Summary)