GST: Charge, Supply, Place of Supply, Time of Supply and Valuation
What the exam tests
This domain tests the taxable event of GST, the meaning of supply, the dual GST structure, and the rules that decide whether CGST plus SGST or IGST applies. It also tests place of supply, time of supply and transaction value under Section 15.
Core rules
- Charge: GST is levied on intra-state supply as CGST plus SGST and on inter-state supply as IGST. The taxable event is supply, not sale or manufacture alone.
- Supply: Includes sale, transfer, barter, exchange, licence, rental, lease and disposal, for consideration in the course or furtherance of business. Specified supplies without consideration are also covered. Composite supply is naturally bundled; mixed supply is not.
- Place of supply: For goods, generally the location where goods are delivered. For services, generally the location of the recipient; specific rules apply to immovable property, transportation, restaurant services and other categories.
- Time of supply: Generally the earlier of invoice date and payment date, subject to specific rules for goods, services, reverse charge and vouchers.
- Value: Section 15 uses transaction value where parties are unrelated and price is the sole consideration. It includes specified taxes, fees and incidental charges, but excludes GST and eligible discounts.
Worked example
A Maharashtra supplier sells goods for ₹1,00,000 to a Karnataka buyer and delivers them in Karnataka. The place of supply is Karnataka, so this is an inter-state supply. IGST at 18% is ₹18,000, and the invoice value is ₹1,18,000. If both parties were in Maharashtra, CGST at 9% and SGST at 9% would apply instead.
Traps
Place of supply is not always the supplier's location. GST is excluded from taxable value. Post-supply discounts are not always allowed. Composite and mixed supplies are classified differently. Do not apply IGST merely because the supplier is registered in another state if the actual place of supply is within the state.