Nature of Supply under GST: GST is a destination based tax i.e consumption tax, which means tax will be levied where goods and services are consumed and will accrue to that state thus, it is of immense importance that the place of supply of any transaction is determined correctly. To determine the correct place of supply, it is important that the nature of supply be understood first. Following table list provisions as contained in IGST Act, 2017, to know whether a supply will be treated as Inter State or Intra State supply.

Nature of Supply under GST

The following services shall be treated as inter state supply:

in the taxable territory, not being an intra-State supply and not covered elsewhere in this section​

The following supplies shall be treated as intra state supply:

Following will be treated as establishments of distinct persons:

 

two different Union territories; or a State and a Union territory

  • supply of goods to or by a Special Economic Zone developer or a Special Economic Zone unit

  • goods imported into the territory of India till they cross the customs frontiers of India

  • supplies of goods made to a tourist as referred to in Section 15

  • an establishment in India and any other establishment outside India;an establishment in a State or Union territory and any other establishment outside that State or Union territory; oran establishment in a State or Union territory and any other establishment being a business vertical registered within that State or Union territory

A person carrying on a business through a branch or an agency or a representational office in any territory shall be treated as having an establishment in that territory

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