3) Goods sold from Solapur to Hubli is an example of SGST.
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The statement given above is false. In the above case, Integrated Goods & Services Tax (IGST) will be applicable.
Explanation:
- When the location of the supplier and the location of the buyer is in the same state is considered an intra-State supply.
- In this type of transaction, a seller has to gather both SGST and CGST from the buyer. SGST gets deposited with State Government and the CGST gets credited to Central Government.
- As Solapur is in Maharashtra and Hubli in Karnataka, this is a case of inter-State supply of goods or services, where the site of the supplier and the place of supply are in different states. A seller has to charge IGST to the buyer in case of an Inter-State transaction.
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