IGST Section 7 of Integrated Goods and Services Tax Act, 2017 (IGST Act, 2017)-Inter-State supply

The Integrated Goods and Services Tax Act, 2017

Chapter-IV Determination of Nature of Supply

Section 7: Inter-State supply.

7. (1) Subject to the provisions of section 10, supply of goods, where the location of the supplier and the place of supply are in–

(a) two different States;

(b) two different Union territories; or

(c) a State and a Union territory,

shall be treated as a supply of goods in the course of inter-State trade or commerce.

(2) Supply of goods imported into the territory of India, till they cross the customs frontiers of India, shall be treated to be a supply^c1 of goods in the course of inter-State trade or commerce.

(3) Subject to the provisions of section 12, supply of services, where the location of the supplier and the place of supply are in–

(a) two different States;

(b) two different Union territories; or

(c) a State and a Union territory,

shall be treated as a supply of services in the course of inter-State trade or commerce.

(4) Supply of services imported into the territory of India shall be treated to be a supply of services in the course of inter-State trade or commerce.

(5) Supply of goods or services or both,–

(a) when the supplier is located in India and the place of supply is outside India;

(b)^C2 to or by a Special Economic Zone developer or a Special Economic Zone unit; or

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

shall be treated to be a supply of goods or services or both in the course of inter-State trade or commerce.

References

Enforcement:

Enforced w.e.f. July 01, 2017 [Notification No. G.S.R. 662(E) dated 28.06.2017].

Circulars:

c1. IGST shall be levied and collected at the time of final clearance of the warehoused goods for home consumption i.e., at the time of filing the ex-bond bill of entry and the value addition accruing at each stage of supply shall form part of the value on which the IGST would be payable at the time of clearance of the warehoused goods for home consumption. In other words, the supply of goods before their clearance from the warehouse would not be subject to the levy of IGST and the same would be levied and collected only when the warehoused goods are cleared for home consumption from the customs bonded warehouse. [Circular No. 3/1/2018-IGST dated 25.05.2018]

c2. Services of short-term accommodation, conferencing, banqueting etc. provided to a SEZ developer or a SEZ unit should be treated as an inter-State supply (under section 7(5)(b) of the IGST Act, 2017) or an intra-State supply (under section 12(3)(c) of the IGST Act, 2017)?, refer Circular No. 48/22/2018-GST dated 14.06.2018.