Vineet Enterprises, registered under GST law in Delhi, is engaged in supply of various goods and services exclusively to Government departments, agencies etc. and persons notified under section 51 of the CGST Act, 2017.

Answer 1(a) (i) Supply of a heavy machinery to Public Sector Undertaking (PSU) located in Pune Being an inter-State supply of goods, supply of heavy machinery to PSU in Pune is subject to IGST @18%. Therefore, total value of taxable supply [excluding IGST] under the contract is as follows: = ₹ 5,90,000 × 100 / 118 = ₹ 5,00,000. Since the total value of supply under the contract exceeds ₹ 2,50,000, PSU in Pune and place of supply and place of registration of recipient are not in different states, the recipient is required to deduct tax @ 2% of ₹ 30,000, i.e. ₹ 600. (ii) Supply of taxable goods to Delhi office of Central Housing Bank, a society established by Government of India under the Societies Registration Act, 1860 Being an intra-State supply of goods, supply of taxable goods to National Housing Bank, Delhi is subject to CGST and SGST@ 9% each. Therefore, total value of taxable supply [excluding CGST and SGST] under the contract is as follows: = ₹ 6,49,000 × 100 / 118 = ₹ 5,50,000. Since the total value of supply under the contract exceeds ₹ 2,50,000, Central Housing Bank, Delhi is required to deduct tax @ 2% (1% CGST + 1% SGST) of ₹ 51,000, i.e. ₹ 1,020. (iii) Interior decoration of Virag Bhawan located in Delhi Proviso to section 51 (1) of the CGST Act, 2017 stipulates that no tax shall be deducted if the location of the supplier and the place of supply is in a State or Union territory which is different from the State or as the case may be, Union territory of registration of the recipient. Section 12(3) of the IGST Act, 2017, inter alia, stipulates that the place of supply of services, directly in relation to an immovable property, including services provided by interior decorators, shall be the location at which the immovable property is located or intended to be located. Accordingly, the place of supply of the interior decoration of Virag Bhawan shall be Delhi. Since the location of the supplier (Vineet Enterprises) and the place of supply is Delhi and the State of registration of the recipient i.e. Government of Madhya Pradesh is Madhya Pradesh, no tax is liable to be deducted in the given case.