Applicablity of CGST & SGST
Query (Issue) Started By: – Narendra Soni Dated:- 7-11-2016 Last Reply Date:- 24-1-2017 Goods and Services Tax – GST
Got 16 Replies
GST
Dear Experts,
Please confirm whether CGST or SGST or Both are applicable in the below two conditions, when :-
1. The supplier and the recipient are both located within the State.
OR
2.The supplier and the recipient are located in different States.
Reply By Rajagopalan Ranganathan:
The Reply:
Sir,
If supplier and the recipient are located within the State then CGST or SGST as the case may be, are applicable.
If the supplier and the recipient are located in different States then IGST (Integrated goods and Service Tax) is applicable.
Reply By Narendra Soni:
The Reply:
Sir
Im your reply,unable to understand " CGST or SGST as the case may be, are applicable." Please explain the cases.
Reply By Ganeshan Kalyani:
The Reply:
In my view both CGST and SGST shall be applicable in situation 1 & IGST i
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only when the supplier and recipient are both located within the state".
Reply By Ganeshan Kalyani:
The Reply:
Central levy is subsumed into CGST and state levy is subsumed into SGST . the central levy is applicable on intra state transaction as CGST and the same is applicable on inter state transaction as IGST . therefore , in my view the meaning of the sentence in the query id 10 of FAQ is that party supplying and receiving should be within state for SGST and the location of both the supplier and receiver of goods is immaterial.
Reply By Ganeshan Kalyani:
The Reply:
Pls continue reading….
for CGST .
Reply By Narendra Soni:
The Reply:
Thanks Mr. Kalyani,
"location of both the supplier and receiver of goods is immaterial for CGST", it means in any supply whether intra state or inter state CGST is applicable ??? Being IGST is applicable on inter state supply then whether both CGST and IGST simultaneously applicable on every inter state supply ??.
Please clarify
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supply. In case of export only IGST is applicable.
Am I correct ??
Kindly revert.
Reply By Ganeshan Kalyani:
The Reply:
In my view your view is not right.
Reply By Narendra Soni:
The Reply:
Dear Mr.Govindarajan,
As per Mr.Kalyani, the view is not correct,
Any expert, if can solve the issue.
Reply By Ganeshan Kalyani:
The Reply:
Dear Soni Ji,
To put it in simple way is – CGST and SGST is applicable on intra state transaction and IGST is applicable on interstate transaction . IGST is Central Government levy and IGST is also a central government levy. therefore it can be said that CGST and IGST are same. therefore the act states that for CGST the location of both supplier and purchaser is irrelevant. but for SGST both the both the party should be with the state.
Reply By Ganeshan Kalyani:
The Reply:
Pls read second sentence as " IGST is Central Government levy and CGST is also a central government levy".
Reply By Dilip Kumar:
The Reply:
The only difference betwee
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