We are about to raise an invoice to a party who has provided its billing address of Gurgaon and they are registered under GST in Gurgaon only. Whereas the service is to be executed at their Kolkata location and they do not have GST registration in West Bengal. Billing Address will be of Gurgaon and Place service address will be of Kolkata Location then which tax will be charged on the invoice, IGST or CGST and SGST? And whether they will be able to take input tax credit of the same?
Please Note: We are registered under GST in West Bengal only and we do not have registration in Gurgaon.
Hi Chandan, in case of supply of service, place of supply will be the location of supplier.
As per section 12 of IGST Act, place of supply should be the location of person in case of recipient is registered under GST.
If your buyer is registered in Gurgaon then you have to charge IGST regardless of where service is provided.
However, you have not mentioned nature of service, if service is related to an immovable property then you need to charge CGST and SGST since place of supply will be location of immovable property.
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