Articles

A.Where location of supplier and recipient is in India: (Section 12)

Inter-state supply: (Section 7 of IGST Act, 2017)

For the purpose of above sections, when the location of the supplier and the place of supply of services are in the different states, it shall be treated as inter-state supply as per Section 7 of IGST Act, 2017. Supply of services to or by a SEZ will be treated as an inter-state supply.

Intra-state supply: (Section 8 of IGST Act, 2017)

For the purpose of above sections, when the location of the supplier and the place of supply of services are in the same state, it shall be treated as intra-state supply as per Section 8 of IGST Act, 2017. Subject to provisions of section 12, intra-state supply of services shall not include supply of services to or by a SEZ.

B.Where location of supplier or recipient is outside India (Sec. 13)

As per Earlier Laws:

• When the goods are manufactured in job worker premises, the manufacturer has to give a declaration under notification no. 214/86 dated 25.03.1986 to claim exemption from payment of excise duty.
• The declaration has to be given to the AC/DC of central excise having jurisdiction over the factory of the job worker.
• Manufacturer has to send the goods through challan under Rule 4(5)(a) of Cenvat credit rules, 2002 by filling part-1.
• The job worker has to fill the part-2 while sending the goods back to the manufacturer.

Inter-state supply: (Section 7 of IGST Act, 2017)

For the purpose of above sections, when the location of the supplier and the place of supply of goods are in the different states, it shall be treated as inter-state supply as per Section 7 of IGST Act, 2017.

Intra-state supply: (Section 8 of IGST Act, 2017)

For the purpose of above sections, when the location of the supplier and the place of supply of goods are in the same state, it shall be treated as intra-state supply as per Section 8 of IGST Act, 2017.

As there are many confusions regarding the exports the bonds to be used or the CT-1 which is already submitted before transition period. So, we have attempted to clarify such doubts through this notes along with the notification numbers and circular numbers issued by CBEC. 1.As per the circular No. 4/2017-GST dated, 07th July 2017 it has been clarified that the exporters are allowed to use the existing bonds/LUT till 31st July, 2017. From 01st August onwards, the exporters has to use the new bonds and LUT as per the GST. 2.Further it has been clarified vide circular No. 26/2017- Customs dated 01st July, 2017 that

the existing practice of sealing the container with a bottle seal under Central excise supervision or otherwise would continue till 01st September, 2017. A copy of the sealing report would be forwarded to the Deputy/Assistant Commissioner having jurisdiction over the principal place of business.

3.There is no notification / Circular issued for the merchant exporters. So, when the goods are supplied to a merchant exporter GST has to be charged.

4.The procedure for exports without payment of IGST has been prescribed in rule 96A of GST rules, 2017 in notification no. 15/2017-CGST dated 01.07.2017

Under Service Tax regime, Reverse Charge Mechanism (RCM) was applicable to certain services and not goods. There were 15 services in which reverse charge is applicable under service tax such as works contract service, Insurance agent service, manpower supply service, Goods Transport Agency etc.

Under GST, reverse charge mechanism covers not only service but also goods under its scope. In GST, supplier will be liable to collect tax on goods and services provided. But government has specified certain goods and services under which tax has to paid under reverse charge basis irrespective of whether supplier is GST registered or not.