Place of supply for a registered person got delivered goods to its worksite in another state .

[KALLESHAMURTHY MURTHY K.N.]

A firm in the business of civil works contracts registered in Karnataka only, undertakes works contracts in Tamilnadu, procuring construction materials in Tamilnadu itself and got delivered to the worksite in Tamilnadu. Tamilnadu suppliers have issued tax invoices for IGST and are also charging CGST & SGST. The firm has availed of the ITC of such tax in Karnataka and declared output tax under IGST. Is this the correct procedure with respect to the tax invoice issued by the suppliers for the goods delivered in Tamilnadu charging IGST in terms of place of supply? Since works contract executed in Tamilnadu is the output tax not liable to Tamilnadu.

AI Summary

Place of supply rules decide whether IGST or CGST and SGST apply to goods delivered to out of state worksites.
Place of supply for goods delivered to an out of State worksite controls whether suppliers charge IGST or CGST and SGST, affecting the recipient's ITC. If supply is legitimately effected from the supplier's registration outside the worksite State and the recipient lacks an establishment there, invoices with IGST may be appropriate; if the contract's execution or a fixed establishment triggers registration in the worksite State, the supply is intra State and must bear CGST and SGST. The bill to ship to model and Section 10(1)(ca) of the IGST Act are cited in support of IGST invoicing.