Table of Contents
1. When is a supply considered to be an intra-state supply?
- A supply is considered to be an intra-state supply when the location of supplier and place of supply of goods or services is in the same state or Union Territory.
- CGST and SGST will be levied on intra-state supplies.
2. When is a supply considered to be an inter-state supply?
- A supply is considered to be an inter-state supply when the location of supplier and place of supply of goods or services are in two different states/UT.
- IGST will be levied on inter-state supplies.
3. Imports under GST
- Both the import of goods and services shall be regarded as interstate supply and hence IGST is leviable on the same.
- In the case of import of goods, IGST has to be paid by the importer along with the customs duty before clearing the goods for home consumption.
- In the case of import of services, tax is required to be paid by the service receiver under the reverse charge mechanism.
4. Export under GST?
- Exports shall be deemed to be interstate supplies and hence subject to levy of IGST.
5. GST on supply of goods or services to tourists
- A tourist is normally a non-resident who intends to stay in India on a temporary basis, usually for a period less than 6 months as per section 15 of the IGST Act, 2017.
- Supply to tourists will be regarded as interstate supply and IGST shall be levied.
- Tourists can however claim the IGST paid by them as refund at the time of leaving India subject to fulfilment of the prescribed conditions.
6. What are the goods on which GST is not applicable?
The following items have been excluded from the purview of GST by the government of India for the time being,
- Petroleum crude,
- High speed diesel,
- Motor Spirit (commonly known as petrol),
- Natural gas
- Aviation Turbine Fuel.
- Alcoholic liquor for human consumption
7. What is Reverse charge mechanism?
- Normally, GST has to be collected and remitted to the government by the supplier of goods or services. – Forward charge mechanism.
- There are circumstances wherein the tax has to be paid by the service recipient. – Reverse charge mechanism.
8. What is the difference between nil rated, exempted, zero rated and non GST supply?
- Nil Rated supplies – Supplies on which GST is charged at 0% other than zero rated supplies
- Zero rated supplies – Overseas supplies, supplies to SEZ or SEZ developers on which GST is charged at 0%
- Exempted supplies – Supplies on which no GST shall be charged. For eg, milk, bread, fresh fruits etc
- Non-GST supply – Supplies which are outside the purview of GST, for eg. Petrol, Alcohol for human consumption etc