HATURE

TERSTAIE AND INTRASTATE

OF SUPPLIES

STRUCTURA
9 --

CHAPTER
Introduction
supply [Section 7]imioobn
interstate
supply (Section
8)
Intrastate
in ritorial
waters (Section 9)
Supplies

Summary
Keywords

Introduction
Ta India a "Dual GST" model has been adopted and Centre Government and

tes Government will simultaneously levy GST on every supply of goods or services
under the GST
hoth which, takes place within a State or Union
or
Territory. Thus, tax

would be imposed
in the following
laws

manner: GST

Intrastate supplies: Centre shalllge

impose CGST and the respective Sale with in state or
Interstate sale
state shall impose SGST intrastate sale

a Interstate supplies: Centre shall

impose IGST. CGST SGST IGST

Determination of Nature of supply

whether it is interstate
It very important to determine the nature of supply
is

or intrastate, as the kind of tax to be paid (IGST or CGST+SCST) depends on that.

Following provisions are related with determination

of nature of supply:
164
GST
and
Gustomn(,

Determinationof
Nature of supply

Interstate supply Intrastate supply Supplies in

Section 71 (Section 8) territorial
waters
(Section 9)

provisions are provided:

|
Interstatesupply Section 7]: For determination of interstate
supply
following

Inter-State

supply
[Section 7

Inter-State Inter-State
Inter-State

supply of goods
Inter-State
supply of supply of
Other
Inter
supply of services State
[Section 7(1)] imported Supplies
mported goods [Section 7(3)] services (Section 75)]
[Section 7(2)]
Section 7(4)1

T109161
beeoqm 9d blro
1. Interstate
supply of goods [Section 7()]: According to Section 7(1) supplyof
goods shall be treated as a supply of goods in the course of Interstate
trade or
commerce, if the location of the supplier and the place of supply are in
i) two different States;

() two different Union territories; or eikgqre ietstni o

(ii) a State and a Union territory.

nue to euish lonolisaimeo

ggue
o3201 bius sdo
lob hiv boxoksr
t lo bail od 2 a1st
oietog 2ateolot
 andIntrastar 165
nterstate
Inte
pplies:

Interstate
supply of goods
[Section
7(1)

If location of
supplier
and place of supply

in two different
in two different ina State and a
Union
States Union territory
territories

Section 72)
Interstate supply of imported goods |Section 7(2)]: According to
imported into the territory of India, till they cross thecustoms
2.
ofgoods
Supply be a supply of goods the course of
Grontiers of India, shall be treated to in

trade or commerce.
interstate
of services (Section 7(3)]: According to Section 7(3) supply
a Tnterstate supply
shall be treated as a supply of servicesin the course of Interstate
of services
commerce the location of the supplier and the place of supply are
trade or if

in

(a) two different States; nd dae p

two different Union territories; or

(b)

(c) a State and a Union territory,

4. Interstate supply of imported services [Section 7(4)]: According to Section

74) Supply of services imported into the territory of India shall be treated to
be a supply of services in the course of interstate trade or commerce.

supply
of services in the
be
Supply of
services shall treated
course of interstate
to be
imported into India trade or commerce

5. Other Interstate Supplies [Section 7(5)]: Supply of goods or services or both

shall be treated be a supply of goods or services or both in the course of
to

interstate trade or commerce in following cases:

agua
 166
GSTand
Custorns

Other Inter-State Supplies

[Section 7(5)]

Supply to or by a Supplynot
supplier in India
SEZ developer or
covered under an
and place of
uit intra-State
supply is outside and
supply
in section 7

(a) Supplier in India and place of supply is outside: When the e.

located in India and the place supply is outside India. supplieris
of
(b) Supply to or by a SEZ developer or unit: Supply of goods or Se
both to or by a Special Economic Zone developer or a Special
Zone unit. eboog u Fs
o920 que
(c) Supply not covered under an intra-State supply andd in
section
Supply of goods or servicesor both in the taxable territory, not beine.
intra-Statesupply and not covered elsewhere in Section 7.
:
ggue
Intra-State supply (Section 8): For determination of Intra-State sun

following provisions are provided: supply

o9 orgibrosoA
Intra-State

(Section
supply
8)
191ib
inUsrsisdw
oinUsbes 938ie
a to vlqqoe 9isteotnl

oelqeweETupo
ovw

s )
Intra-State supply Intra-State supply
of goods of imported goods

Section 8(1)] [Section 8(2)]

1. of goods
[Section 8(1)J: According to Section 8(1) supply
Interstate supply

o
iodoof
9
goods where the location of the supplier and the place of supply of goods
are in the same State or same Union territory shall be treated as intra-State
supply. However, the following supply of goods shall not be treated as intra
State supply, namely:
 Intrastate
and 167
rstate
Inters

oSupplies:
ature
Intrastate supply

Section
of

8(1)
goods
30
of are of goods
ofs supply
and place
place supply

flocation
of supplier
of supplier
in the 18 not be treated as

intra-State supply

same Union Supply of goods Imported goods

to or made to
State
territories by a SEZ till
they cross the Supplies
same a tourist
developer or unit customs frontiers
of India

) Supply of goods
by a Special
to
Economic
a
or by SEZ developer or unit: supply of goods to or
Zone developer or a SpecialEconomic Zone unit.

Gi Imported goods till they cross the customs frontiers of India: Goods
the territory of India till
imported into they cross the customs frontiers
of India.
ii) Supplies made to a tourist:
supplies made to a tourist referred to in

Section 15.
ot services [Section 8(2)]: According to Section 8(2) supply
2. Intrastate supply
of services where
the location ot the supplier and the
place of supply of services
are in the same State or same Union territory shall be treated as intra-State
However, the intrastate supply of services shall not include supply of
Supply.
services to or by a Special Economic Zone developer or a Special Economic
db Zone unit.

Intrastate supply of services

[Section 8(2)]

6noup dage lgquato sutsP

oilgque i)
coto supply of services
if location of supplier
andei not be treated as
place of supply are in the
intrastate supply to vique
1532193019

slggoe
ni 93V19oboog same Union Supply of services
same State to or
by a SEZ
sbas 19ilequ 20 11013630
territories
developer or unit
2o1oS1 noiUr9 uelososlg
 168 olcasdol bas
GSTand
of distinct Custome
Establishments treated as establishments nee.

where a person has- persons: For

purposes of this Act, or
the
i) an establishment in India and any other establishment outie

(ii) an establishment in a Stateor Union territory and any other es India

outside that State or Union territory;
or
hnen
(iil) an establishment in territory and any other estat.
a Stateor Union
within that State or
being a business vertical registered Union
then such establishments shall be treated as establishmente c
persons. listine,

Supplies in territorial waters (Section 9)

According to Section 9 is related with determination of location of the SItn

place of supply in following cases: so d o er or

oN 2119mopa Is
if location
ofthe supplier if
place of
is in the territorial waters supply is in
the
territorial waters
deemed to bein the State or
Union territory
where the
1nearest point of the appropriate
baseline is located

(a) Location of the supplier: where the locationof the supplier is in theteritorial
waters,the location of such supplier deemed to be in the coastal State or
a
Union
ion

territory where the nearest point of the appropriate baseline is located.

(b) Place of supply: where the place of supply is in the territorial

waters, the
place ofsupply deemed to be in the coastal State or Union
territory where the
nearest point of the appropriate baseline is located.

Nature of supply:
(ii) Supplies in
)
territorial
SUMMARY
Interstate supply [Section 7], (i) Intrastate

waters (Section 9)
supply (Section 8)

Interstate supply [Section7]: 6) Interstate

supply of goods [Section7(),()Interstate
supply of imported goods [Section 7(2)1. (ii) Interstatesupply of services [Section

of imported services[Section (v) Other

781.
iv)Interstatesupply 7(4)). Interstate

Supplies [Section 7(5)]

Interstatesupply: Supply of goods shall be a supply of goods/service in
treated as
the course of trade or commerce, if the location of the
supplier and the
interstate

place of supply are in: (a) two different States; (b) two different Union territories