A dealer of Gujarat state has to supply the specific goods to the customer of Maharashtra for which he would require to purchase one pattern. The Gujarat dealer will charge to maharashtra dealer for the same. However, pattern physically remains with the Gujarat dealer. Movement of the pattern will not take place. In this case, what tax should be charged by the Gujarat dealer? Whether S+C or IGST?

Reply— As stated above, pattern is with the dealer of Gujarat and it is not moved either by the manufacturer or by the customer.  The place of supply of goods, other than supply of goods imported into, or exported from India, shall be the location of such goods at the time of the delivery to the recipient as per clause (c) of sub section (1) of section 10 of the IGST Act 2017. Therefore, the place of supply of pattern in this case is the location of manufacturer i.e. Gujarat. 

In view of the above, the location of the supplier and place of supply of the pattern to the customer are one and the same i.e. Gujarat and such being the case said transaction shall be treated as intra-State transaction as per sub section (1) of section 10 of the IGST Act 2017and the applicant has to issue the CGST and SGST tax invoice to the customer and liable to collect and pay the CGST and SGST tax.