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Published on:
February 23, 2023
By
Paramita

Intra-state or Inter-state supply in EX works contracts: Revised GST Law

Intra state or Inter state supply in EX works contracts is an important aspect of the Revised GST Law. This law has been put into place to provide clarity and uniformity in the application of GST across the country. In this blog, we will discuss the key points related to intra-state and inter-state supply in EX works contracts under the Revised GST Law.

Inter-state Supply in EX Works Contracts

When it comes to inter-state supply in EX works contracts, the Revised GST Law clearly defines the terms and conditions that need to be met. According to the law, inter-state supply is defined as the supply of goods from one state to another state. This means that the goods are manufactured or produced in one state and then transported to another state for sale.

In an EX works contract, the buyer is responsible for arranging transportation from the place of origin to the place of delivery. This means that the transportation of goods in an EX works contract is the responsibility of the buyer. However, the Revised GST Law has made it clear that the place of supply in an EX works contract is the location of the buyer. This means that the place of supply is not the place of origin, but rather the place where the goods are delivered.

When it comes to inter-state supply in EX works contracts, the Revised GST Law has also made it clear that the IGST (Integrated Goods and Services Tax) will be levied on the sale of goods. The IGST is a tax that is levied on the sale of goods across interstate boundaries. This means that if you are selling goods from one state to another state, you will be required to pay the IGST on the sale of goods.

Intra-state Supply in EX Works Contracts

When it comes to intra-state supply in EX works contracts, the Revised GST Law has also defined the terms and conditions that need to be met. According to the law, intra-state supply is defined as the supply of goods from one place in a state to another place in the same state. This means that the goods are manufactured or produced in one place in a state and then transported to another place in the same state for sale.

In an EX works contract, the buyer is responsible for arranging transportation from the place of origin to the place of delivery. This means that the transportation of goods in an EX works contract is the responsibility of the buyer. However, the Revised GST Law has made it clear that the place of supply in an EX works contract is the location of the buyer. This means that the place of supply is not the place of origin, but rather the place where the goods are delivered.

When it comes to intra-state supply in EX works contracts, the Revised GST Law has made it clear that the SGST (State Goods and Services Tax) and the CGST (Central Goods and Services Tax) will be levied on the sale of goods. The SGST is a tax that is levied by the state government on the sale of goods, while the CGST is a tax that is levied by the central government on the sale of goods.

Conclusion

In conclusion, the Revised GST Law has made it clear that intra-state and inter-state supply in EX works contracts will be subject to different tax rates. The law has also made it clear that the place of supply in an EX works contract is the location of the buyer. This means that the buyer is responsible for arranging transportation from the place of origin to the place of delivery. If you are a business owner, it is important to understand the terms and conditions related to intra-state and inter-state supply in EX works contracts under the Revised GST Law.

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Updated on:
March 16, 2024