Example

ABC Caterers located in Delhi provided Catering Service in Delhi for Rs. 5 lakh to a client of Mumbai and collected integrated tax on the supply of services as recipient of services in another state.
Determine whether ABC Caterers are correct in charging IGST considering it as inter-state supply.


Answer

As per section 12(4) of IGST Act, the place of supply of the following services shall be the location where the services are actually performed, i.e restaurant service, catering services, personal grooming, fitness, beauty treatment, health services etc.

In view of the above provision of place of supply is in Delhi. Location of supplier is also in Delhi, thus, the supply of service of Catering is an intra-state supply and ABC Caterers is required to charge CGST and SGST on the said supply.