I have a client who is an artist and makes Paintings and sells them. The client is registered under GST in MAHARASHTRA.

I want to Know whether IGST or CGST and SGST will be applicable in the following cases.

1) Painting made in MAHARASHTRA and send through courier to Hydrabad to a person who has GST number of HYDRABAD state. ( Painting is purchased by a person from Hydrabad)

2) Painting made in MAHARASHTRA and the person from Hydrabad has purchased it and taken along with him (Hand Delivery) the person has GST number of HYDRABAD state.

3) Painting Made and send Out of India and consideration received through NRE account.

 Reply

Firstly the taxpayer has to determine whether the transaction is inter-state or intra-state. If the transaction is intra-state, CGST and SGST will applicable and if transaction is inter-state IGST will be applicable.

As per section 7(1) of IGST Act, 2017, subject to the provisions of section 10, supply of goods, where the location of the supplier and the place of supply are in two different states  shall be treated as a supply of goods in the course of inter-State. 

Location of supplier is usually where a supply is made from, a place mentioned as a principal place of business on the GST registration certificate.

And usually place of supply in case of goods is where the goods are delivered. And if goods are  exported from India place of supply shall be the location outside India

In first case, Since location of supplier and place of supply are in different state IGST will be charged.

In second case, as mentioned above that the recipient of goods is registered in other state, and then IGST will be charged.

In third case (export of goods), since the location of supplier and place of supply are in different state IGST will be applicable.