Free tool to know Place of Supply
Taxmann.com has announced the launch of the ‘Supply Location Tool‘ that can be used to identify the place of supply for the purposes of the GST.
The tool requires the user to answer some questions related to the transaction that is being carried out. On the basis of user input, the tool quickly identifies the place of supply according to the provisions of the GST Law.
The GST is a tax based on destination, which means that goods and services will be taxed at the place where they are consumed. This brings the concept of the place of supply (POS) under the GST.
POS is an essential factor since it helps to know if the transaction is intrastate or interstate supply and, consequently, the tax will be applied, that is, CGST, SGST & amp; IGST.
CGST and SGST are charged if the provider and the recipient are in the same state as the place of supply within the state. However, the identification of POS becomes a challenging task in complex transactions as a seller and buyer, located in two different states, but the goods are delivered in the third state. This tool helps to accurately identify the place of supply in more than 125 different situations. It is absolutely free for users.
We have conceived this idea because it is very important that a supplier charges the correct tax on the invoice. If he charges CGST and SGST instead of IGST, there will be a deficiency in his IGST responsibility and an overpayment in CGST and SGST.
You will be asked to pay interest on the deficiency and you will not get any interest on the overpayments. Therefore, we have developed this tool that is easy to use and provides the instant result. In fact, this tool saves time, effort and money.