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🚛🌍 Inter-State Supply under GST

🧭 What Is Inter-State Supply?

As per Section 7 of the IGST Act, a supply is Inter-State when:

➡️ Location of supplier and place of supply are in different States / Union Territories
➡️ Supply is to or by an SEZ Unit/Developer
➡️ Import or Export of goods/services
➡️ Supply to International tourists
➡️ Any supply in the course of inter-State trade or commerce

🧾 Inter-State Supply = IGST 👈

When supply is inter-State ➡️ IGST is levied, which is later shared between Centre & Destination State.
No CGST + SGST combo here! ❌➕✅

🧪 Example 1:
A supplier in Delhi sells goods to a buyer in Mumbai 🏢
📍 Location of supplier = Delhi
📍 Place of supply = Maharashtra
👉 Inter-State Supply → IGST applies

🚩 When Else Is Supply Treated as Inter-State?🔍 

1️⃣ Supplier & Recipient in Different States/UTs 🌐

🧪 Example 2:
Mr. A (Gujarat) supplies software services to Ms. B (Rajasthan)
📍POS ≠ Location → IGST applies

2️⃣ Import of Goods/Services 🌊📦

📜 IGST is charged in addition to Customs Duty
🧪 Example 3:
Import of laptop from USA to Delhi
📍POS = India → IGST paid by importer at customs

3️⃣ Export of Goods/Services ✈️🌍

🟢 Exports = Inter-State, but are Zero-rated
🧾 Claim refund of ITC or pay IGST and claim refund

🧪 Example 4:
A Jaipur-based exporter sends handicrafts to France
📍POS = France → Zero-rated Inter-State Supply

4️⃣ To/By SEZ Unit or SEZ Developer 🏢

✅ Always Inter-State
Even if both parties are in the same State!

🧪 Example 5:
Company in Hyderabad sells software to SEZ in same city
📍Still Inter-State → IGST applies

5️⃣ Inter-State Branch Transfers (with separate registrations) 🔄

🧾 Supply between distinct persons under the same PAN = Taxable

🧪 Example 6:
XYZ Ltd. (Registered in Delhi & Haryana) sends stock from Delhi to Haryana
📍Even without consideration → Inter-State supply → IGST payable

6️⃣ Tourist Exemption on Imports 🧳

Goods imported by non-residents leaving India = Treated as Inter-State export
📍POS = Outside India → Zero-rated

🧪 Example 7:
Tourist buys camera in Mumbai and leaves for UK
📍POS = UK → Export → GST exempted under tourist refund scheme (when applicable)

⚖️ Key Legal Sections to Remember

📘 Section 7 of IGST Act = Inter-State Supply
📘 Section 10 & 12 of IGST Act = Place of Supply Rules
📘 Section 2(56) CGST Act = Definition of India (includes UTs, waters, etc.)

🧠 Quick Recap Table

Supply Scenario Inter-State? Tax Type 🔍
Supplier & recipient in different States ✅ Yes IGST
Import from outside India ✅ Yes IGST + Customs
Export to outside India ✅ Yes Zero-rated (IGST)
Supply to SEZ ✅ Yes IGST
Supply between different registrations (PAN) ✅ Yes IGST
Sale within same State ❌ No CGST + SGST
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