Haryana Government has issued an advisory for all Government departments to keep in mind the provision of the Goods and Services Tax (GST) Act regarding place of supply while procuring goods and services.
The introduction of GST has brought about uniformity in the indirect taxation regime across the States. The business processes and the rates of tax under GST are uniform throughout the country, said an official spokesman.
He said that there are two basic features of GST to safeguard the State tax under GST while procuring goods and services for the State of Haryana. These are GST is levied on taxable supplies simultaneously both by States or UT Government and Central Government.
The spokesman said that the departments should keep these guidelines in mind while awarding contracts for supplies of goods or services or works contract. There is a concept of 'place of supply' in the GST law. The place of supply for supply of goods had been elaborately defined under section 10 of Integrated Goods and Service Tax, 2017 and for various types of supplies of services under section 12 of the Act, ibid.
He said that the departments could very well check these aspects in the tax invoices received by them and further by asking for a copy of GSTR-1 or seeking an undertaking from the suppliers that they have furnished their GSTR-1 correctly by mentioning the State of Haryana in relevant column of place of supply in GSTR-1.
In case of any doubt or ambiguity, the departments might further approach the Department of Excise and Taxation, Haryana by making a request in writing or visiting in person for any further assistance or clarification on the subject, he added.