Goods and Services Tax (GST) is an indirect tax throughout India to replace taxes levied by the Central and State Governments of India.
What are the rules for charging GST?
When the seller is based in India and the buyer (receiving business/end-consumer) is:
- In the same State: CGST + SGST is to be charged.
- In another State: IGST is to be charged.
- In the same Union Territory: CGST + UTGST is to be charged.
When the seller is based outside India and the buyer is:
- In India and has a valid GST ID: No tax is to be charged.
- In India but does not have a GST ID: IGST is to be charged
- Outside India: No tax is to be charged.
How does this affect me?
If you are based in India and GST is applicable to you, the invoices generated will be updated to include the following:
- CGST+SGST / IGST / CGST + UTGST as applicable.
- GST ID of the Seller and Buyer, if available.
- Service Account Code (SAC)
- “Original for Recipient” or “Duplicate for Supplier” as applicable.
- Place of supply.
How do I add my GST ID?
You can add your GST ID from your Control Panel by clicking the icon at the top right corner of the page and then clicking on Your Account & Security. You can then enter your GST ID in the provided field.
How is tax charged when a seller based outside India enables GST?
If the GST ID is added, the tax will be charged as per the buyer's state.
- SGST + CGST if the buyer and seller are from same state.
- IGST if the buyer and seller are from different states.
If the GST ID is not added, IGST will be charged.
The buyer is considered to be Indian if any of the following profile details are Indian:
- Buyer's Country
- Buyer's Mobile Number
- Buyer's Telephone Number
The GST ID provided must match the state mentioned in your profile.
You can claim input tax credit only if the GST ID is reflecting on the invoice. For GST ID to be included on the invoice, you will need to update the GST ID in your profile before the invoice is raised.