What is the Full Form of POS in GST?
The POS Full Form in GST is Place of Supply. This is one of the most essential concepts, as it helps in determining the location where the liability to treat goods and services will arise. This location is vital as it affects the GST (Goods and Services Tax) levied in the form of Integrated GST (IGST), or in the form of both Central GST (CGST) and State GST (SGST). In simple terms, the POS determines the nature of the transaction, either within the state or outside the states, which eventually has a bearing on the kind of GST charged.
Summary of Place of Supply:
In short, the Place of Supply determination summarizes the rate and type of GST to be charged. It affects how a business should charge GST and pass the correct amount of tax on to the government, especially in inter-state transactions.
Understanding Place of Supply for Various Transactions:
In general, for goods, the Place of Supply is the place where the goods get delivered finally. For services, it can widely vary. In the case of transportation services, for example, the Place of Supply is at the destination where the transport service ends. On the other hand, in cases where the service involves real property, the place of supply is the location of the property. The same has been prescribed in Section 12 and Section 13 of the IGST Act, respectively, covering domestic and international transactions.