What is Intra State Supply?

Hi Buddy,

You should know what is intra state supply and Interstate supply as they are extremely important in determining IGST, CGST, and SGST in GST. IGST is levied on interstate supplies, while CGST and SGST are levied on intrastate supplies.

The supply of goods or services from one state to another is referred to as interstate supply under GST. The GST Act defines interstate supply as where the supplier's location and the customer's place of supply are both in

• Two distinct States

• Two distinct Union territories

• A State and a Union territory

An intrastate supply is a supply of goods or services inside the same state or Union territory that is subject to GST. Intrastate supply would not apply to goods or services provided to a Special Economic Zone developer or Special Economic Zone unit located within the same state. Interstate supply is defined as any supply of products or services to a Special Economic Zone developer or Special Economic Zone unit.

I have provided below the difference table of Intra and Interstate supplies to ease your confusion:

I hope this clarifies you about what is intra state supply and Interstate supply:)

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Interstate and Intra state meaning in GST are the most crucial parts of GST since they let one decide whether IGST, CGSST, or SGST should be paid. Depending on the supplier's location and the location of the supply, a supply can be classified as intrastate or interstate.

The meaning of Intra state supply involves a supply that occurs when the place of supply and the supplier of the goods or services are located in the same state. SGST/UTGST (State Goods and Services Tax/Union Territory Goods and Services Tax) and CGST (Central Goods and Services Tax) are applicable to intrastate supplies. Governments of the Central and State/UT respectively impose these taxes.

Depending on the kind of good or service being provided, different intrastate GST rates are applicable. In Intrastate transactions, the suppliers must obtain payment from the clients for the CGST and the SGST. 

I hope this helps you to understand what is intra state supply of goods.

The goods or services being offered will determine the GST rates for both interstate and intrastate supplies. 

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The

intra state in GST

refers to the supply of goods or services within the geographical boundaries of a single state.

Here are some key points related to

what is intrastate supply

:

• GST is a destination-based tax, and its application is based on the principle of the place of supply. In the case of Intra-State Supply, the tax is levied by the state government.

• For Intra-State Supply, the Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST) are applicable.

• Invoices for Intra-State Supply include details such as the supplier's GSTIN, the buyer's GSTIN (if registered), description of goods or services, quantity, value, and applicable GST rates.

The place of supply is a critical factor in determining whether a supply is Intrastate or Interstate. If the location of the supplier and the place of supply are within the same state, it is considered an Intra-State Supply.

Intra-State movement of goods above a specified value generally requires the generation of an E-Way Bill. The threshold for E-Way Bill generation may vary between states.

Businesses can also claim Input Tax Credit on the GST paid on inputs and input services when making Intra-State Supplies. This credit can be set off against the output tax liability.

You should remember that the Composition Scheme is not available for businesses engaged in Inter-State Supplies.

These are the details for

intra state in GST from my end.

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