MANAGEMENT

Detailed explanation-1: -according to Section 7 of the iGST act, if the location of supplier and the place of supply are in: Two different States, ◆ Two different Union territories, ◆ one State and one Union territory, then the supply is an inter-state supply.

Detailed explanation-2: -Inter-State supply of goods means a supply of goods where the location of the supplier and place of supply are in different States or Union territories. Whereas, intra-State supply of goods means supply of goods where the location of the supplier and place of supply are in the same State or Union territory.

Detailed explanation-3: -When the location of supplier and the place of supply are in two different States, then it will be an inter-State supply and IGST applies. And when they are in the same State, then it will be an intra-State supply and CGST/ SGST applies.

Detailed explanation-4: -Irrespective of whether the supplier or the recipient is actually undertaking the movement of goods, the place of supply is the location of goods where movement of goods terminates for delivery to the recipient which is at Chennai. Hence, IGST is applicable.

Detailed explanation-5: -IGST would be levied by the Central Government on all inter-State transactions of taxable goods or services. It requires the transfer of funds between respective accounts.