Place of Supply in ex-works sale

by | Jun 18, 2020 | Articles

NITYA Tax Associates is proud to present their recent write-up in the ‘Article’ series on trending indirect tax issues. A gist of the next article in the series is as under:

Article 44 – “Place of Supply in ex-works sale – A battle between Centre and States”

GST regime was lauded to be a simple taxation system and curb ever-lasting litigations that persisted under the erstwhile regime. Unfortunately, the reality is far from what was promised. GST law is under existential crisis and is unable to justify its stated objectives. One of the issues faced by the Industry is place of supply (‘PoS’) in case of ex-works sales. The issue assumes significance as PoS determines nature of tax to be applied on a transaction i.e. whether IGST or CGST + SGST. A taxpayer is anyway paying full tax, but the issue is of importance for the State Governments as PoS determines which State Government will collect tax.

Through this article, our Managing Partner, Mr. Puneet Bansal and Associate, Mr. Shubham Agarwal have attempted to highlight the anomalies under the law for determination of PoS in case of ex-works sale and an eminent need for resolution of the same.

Please click below to read our article titled Place of Supply in ex-works sale – A battle between Centre and States on the issue.

NITYA I Article 44 I Place of Supply in ex-works sale – A battle between Centre and States

 

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