INTER-STATE + IGST FRAMEWORK

B.1 — Standard inter-State goods supply (Mumbai → Delhi)

Facts: Mumbai manufacturer supplies furniture Rs. 8 lakh to Delhi retailer; rate 18%.

Computation / Steps:

Step 1. Inter-State supply per s. 7(1) IGST.

Step 2. IGST 18% on Rs. 8 lakh = Rs. 1,44,000.

Step 3. POS: Delhi per s. 10(1)(a).

Step 4. Mumbai supplier issues IGST invoice; Delhi retailer takes IGST credit.

Step 5. Apportionment: Per s. 17 IGST — Centre share + Delhi share (destination State).

Step 6. When Delhi retailer onward sells intra-Delhi: CGST + DGST.

Result: Single IGST charge; apportionment to destination Delhi via s. 17.

B.2 — Inter-State services (Bangalore → Mumbai)

Facts: Bangalore IT consultancy provides services Rs. 12 lakh to Mumbai client.

Computation / Steps:

Step 1. Inter-State per s. 7(3) IGST.

Step 2. POS = Mumbai (recipient location per s. 12(2)).

Step 3. IGST 18% = Rs. 2,16,000.

Step 4. Karnataka supplier ≠ POS Maharashtra — inter-State.

Step 5. Mumbai client takes IGST credit; can use for CGST/MGST per Rule 88A.

Result: Inter-State services standard framework. IGST follows recipient location for B2B.

B.3 — Inter-State supply through agent (deemed distinct person)

Facts: Mumbai principal supplies via Delhi agent to end-customer in Mumbai. Two distinct legal entities.

Computation / Steps:

Step 1. Mumbai principal to Delhi agent: Inter-State (s. 7(1)) — IGST.

Step 2. Delhi agent to Mumbai customer: Inter-State (Delhi → Mumbai) — IGST.

Step 3. Each leg separately taxable.

Step 4. Critical: Confirm whether agent or principal-to-principal structure. If principal-to-principal, then standard inter-State framework. If pure agency, then deemed direct supply from principal to customer with agent fee taxed separately.

Result: Multi-leg inter-State supplies. Agent classification (Circular 159/2021 four-fold test) determines structure.

B.4 — Inter-State stock transfer between branches

Facts: ABC Ltd Mumbai branch transfers stock Rs. 10 lakh to Delhi branch.

Computation / Steps:

Step 1. Distinct-person framework per s. 25(4) CGST.

Step 2. Inter-State supply per s. 7(1) IGST.

Step 3. IGST at rate of goods.

Step 4. Value per Rule 28 CGST — open market / 90% recipient sale / cost+10%.

Step 5. Delhi branch takes IGST credit.

Step 6. Rule 28 second proviso — if recipient eligible for full ITC, value declared on invoice is open market.

Result: Inter-State branch transfer = inter-State supply. IGST + Rule 28 valuation. ITC fully chargeable.

B.5 — Inter-State supply of services across multiple States (s. 12(3) Explanation)

Facts: Architect designs property spanning Delhi + Haryana boundaries; consolidated fee Rs. 5 lakh.

Computation / Steps:

Step 1. Immovable property service per s. 12(3) IGST.

Step 2. Property in multiple States; Explanation requires proportionate split.

Step 3. Apply Rule 4 IGST Rules (post 01.01.2019) — area ratio for non-accommodation.

Step 4. Assume area ratio Delhi:Haryana = 3:2.

Step 5. Delhi portion Rs. 3 lakh; Haryana portion Rs. 2 lakh.

Step 6. Inter-State for both — IGST 18% on each portion separately.

Step 7. Separate State invoices required.

Result: Multi-State immovable property — proportionate split per Rule 4 IGST Rules. Two IGST invoices.

B.6 — Inter-State transportation of goods (s. 12(8))

Facts: Mumbai transporter (GTA) transports goods from Mumbai to Bangalore for Mumbai-registered shipper.

Computation / Steps:

Step 1. Per s. 12(8)(a) — POS for registered recipient = Mumbai (recipient location).

Step 2. Supplier Mumbai + POS Mumbai — Intra-Maharashtra.

Step 3. CGST + MGST at 5% (GTA RCM) or 12% (forward charge with ITC).

Step 4. Note: For transportation to outside India (post FA 2018), s. 12(8) proviso — POS = destination.

Result: Intra-Maharashtra GTA — CGST + MGST. For outside-India destination post 01.02.2019, POS shifts to destination.

B.7 — Inter-State passenger transportation (s. 12(9))

Facts: Indian airline IndiGo sells Delhi-Mumbai ticket Rs. 6,000 to passenger; non-registered passenger.

Computation / Steps:

Step 1. Per s. 12(9)(b) — for non-registered passenger, POS = place of embarkation = Delhi.

Step 2. Supplier IndiGo registered in multiple States; for this ticket, deemed in Delhi (embarkation).

Step 3. Intra-Delhi supply — CGST + DGST.

Step 4. Rate: Economy class 5% (with conditions) or 12% per Notif 11/2017-CT(R).

Step 5. Return journey separately analyzed per Explanation to s. 12(9).

Result: Passenger transportation POS = embarkation for non-registered. Delhi embarkation = CGST + DGST.

B.8 — Inter-State telecom services (s. 12(11))

Facts: Bharti Airtel post-paid corporate connection — Delhi billing address; Mumbai SIM holder; monthly bill Rs. 5,000.

Computation / Steps:

Step 1. Per s. 12(11)(b) — post-paid mobile POS = billing address = Delhi.

Step 2. Supplier Bharti Airtel registered in Delhi (for Delhi billing).

Step 3. Intra-Delhi supply — CGST + DGST.

Step 4. Mumbai SIM-holder employee location irrelevant for POS.

Step 5. Corporate ABC takes CGST + DGST credit in Delhi GSTIN.

Result: Telecom post-paid POS = billing address. Delhi billing → CGST + DGST. Formulaic rule.