Place of supply decides
The IGST Act calls a supply inter-state when the supplier's location and the place of supply are in different states, and intra-state when they are in the same one (sections 7 and 8). CGST is levied on intra-state supplies (CGST Act, section 9) alongside the state's SGST; IGST on inter-state ones (IGST Act, section 5). So the question is always: where is the place of supply?
- Hotel rooms — the place of supply of lodging accommodation by a hotel, inn, guest house, home stay, club or campsite is where the property is (IGST Act, section 12(3)(b)). A room is therefore intra-state — CGST + SGST — even when the guest's company is registered in another state.
- Restaurant and catering services — the place where the service is actually performed (section 12(4)).
- Most other services to a registered business — the recipient's location (section 12(2)(a)), so a service billed to a company in another state is IGST.
Alcoholic liquor for human consumption is outside GST altogether: both the CGST and the IGST levy exclude it.
Example
A ₹10,000 supply taxed at 18%, billed within the state: ₹900 CGST + ₹900 SGST. The same supply billed to a business in another state under the general rule: ₹1,800 IGST. The customer pays ₹11,800 either way.
How Nivasik handles it
- One tax rule for the whole product: the bill, the reports, the day-end report and the GSTR-1 and Tally exports all read the same calculation.
- Place of supply for food and counter goods is the counter's state; IGST is charged only for general-rule services to a GSTIN in another state.
- GST invoices show CGST, SGST and IGST separately, summarised by code and rate.