The nature of tax i.e. whether CGST + SGST / UTGST or IGST will be determined on the basis of whether the transaction is an inter-State supply or an intra-State supply.


Where the service provider and the place of supply are in the same State, it will be considered as an intra-State supply and local CGST and SGST / UTGST will be applicable.


However, if the service provider and the place of supply are in different States, IGST will be applicable as the transaction is in the nature of an inter-State supply.