Article 269A of CoI : Article 269A: Levy and collection of goods and services tax in course of inter-State trade or commerce.

Explanation using Example

Example 1:

Scenario: A company in Maharashtra sells machinery to a company in Karnataka.

Explanation: Since the sale involves two different states, it qualifies as inter-State trade. According to Article 269A, the Goods and Services Tax (GST) on this transaction will be levied and collected by the Government of India. The collected tax will then be distributed between the Union and the States based on the recommendations of the GST Council.

Practical Outcome: The Maharashtra company will charge Integrated GST (IGST) on the machinery sold to the Karnataka company. The IGST collected will be apportioned between the Central Government and the State Governments as per the law.

Example 2:

Scenario: An individual in Delhi purchases a software service from a company based in the United States.

Explanation: The import of services into India is considered as inter-State trade under Article 269A. Therefore, the GST on this service will be levied and collected by the Government of India.

Practical Outcome: The individual in Delhi will be required to pay IGST on the imported software service. The collected IGST will be distributed between the Union and the States according to the recommendations of the GST Council.

Example 3:

Scenario: A business in Tamil Nadu supplies goods t...

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