Taxmann.com launches a free tool to know the ‘Place of Supply’ under GST

>>GST is a destination based tax which means that goods and services will be taxed at the location where they are consumed

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Taxmann.com, the leading publisher of tax and corporate laws, today announced the launch of Place of Supply Tool. This tool can be used to identify the place of supply for the purpose of GST. The tool requires the user to answer a few questions relating to the transaction being undertaken. On the basis of inputs by the user the tool quickly identifies the place of supply as per provisions of IGST Act.

GST is a destination based tax which means that goods and services will be taxed at the location where they are consumed. This brings the concept of place of supply (POS) under GST. POS is an essential factor as it helps to know whether the transaction is intra- State or inter-State supply and, accordingly, the tax will be levied, i.e., CGST, SGST & IGST.

CGST and SGST are levied if both the supplier and recipient are located in the same State as place of supply is intra-State. However, the identification of POS becomes challenging task in complex transactions like seller and buyer situated in two different States but goods are delivered in the third State. This tool helps one to accurately identify the place of supply in more than 125 different situations. It is absolutely free for the users.

Commenting on the tool, Ansh Bhargava, Head Growth & Strategy, Taxmann.com said, “We have conceived this idea because it is very significant for a supplier to charge correct tax in the invoice. If he charges CGST and SGST instead of IGST, there will be deficiency in his IGST liability and excess payment in CGST and SGST. He will be required to pay interest on deficiency and will not get any interest on the excess payments. Therefore, we have evolved this tool which is easy to use and provides instant result. Indeed, this tool saves your time, efforts and money”.

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