Place of supply and Zero rated supply under GST terms

Posted on 11 June 2022 Category : GST terms difference

How to differentiateZero rated supply with Place of supply?

What is Zero rated supply? How does Place of supply work under GST regime? What are the difference between Zero rated supply and Place of supply?

Under GST system, the following information explains about Zero rated supply and Place of supply.

“Zero rated supply” means any of the following supplies of goods or services or both, namely:––

Export of goods or services or both; or
Supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit.

Subject to the provisions of sub-section (5) of section 17 of the Central Goods and Services Tax Act, credit of input tax may be availed for making zero-rated supplies, notwithstanding that such supply may be an exempt supply.

“Place of supply” means the place of supply as referred to in Chapter V of the Integrated Goods and Services Tax Act; The place of supply would determine first as to whether the transaction is in India or outside India. If it is outside India it would not be liable to GST.

As per GST terms, Zero rated supply means “Zero rated supply” means any of the following supplies of goods or services or both, namely:––

Export of goods or services or both; or
Supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit.

and Place of supply means “Place of supply” means the place of supply as referred to in Chapter V of the Integrated Goods and Services Tax Act;

The details about Zero rated supply and Place of supply with simple language from GST terms have been mentioned in this web blog separately. I suggest you to read these articles on Zero rated supply and Place of supply, so as to enable you to have a clear idea on these GST terms.

For your immediate reference, we give below web links on Zero rated supply and Place of supply separately below. You may kindly read the below links to know more about Place of supply and Zero rated supply.

About Zero rated supply under GST

Term place of supply under GST Explains

The above information easily explains about Place of supply andZero rated supply .

I hope, you have satisfied with the difference between Zero rated supply and Place of supply explained above. Do you have different thought on difference between Place of supply and Zero rated supply ?

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CGST Act Section 78 Initiation of recovery proceedings

CGST Act section 79 Recovery of tax

CGST Act Section 80 Payment of tax and other amount in instalments

CGST Act section 81 Transfer of property to be void in certain cases

CGST Act Section 82 Tax to be first charge on property

CGST Act section 83 Provisional attachment to protect revenue in certain cases

CGST Act Section 84 Continuation and validation of certain recovery proceedings

CGST Act Section 85 Liability in case of transfer of business

CGST Act section 86 Liability of agent and principal