Question 1

How is the place of supply decided when I sell goods?

Accepted Answer

Section 10 of the IGST Act gives the tests. Where the sale involves movement of goods, the place of supply is the location where the movement terminates for delivery to the recipient, whoever arranges the transport. Where there is no movement, it is the location of the goods at the time of delivery, which covers over-the-counter sales and sales of installed machinery in place. Where goods are assembled or installed at site, the place of supply is the site of installation. Getting this right decides whether you charge CGST plus SGST or IGST, and a T. Nagar seller delivering to a Bengaluru buyer charges IGST because delivery terminates in Karnataka.

Question 2

Can my GST registration be cancelled for not filing returns?

Accepted Answer

Yes. Under Rule 21A, the department can suspend a GSTIN where returns are not filed for a continuous period, and Section 29 permits cancellation where a regular taxpayer has not filed returns for six months (two quarters for QRMP, and a composition taxpayer defaulting on the annual return beyond three months). During suspension you cannot issue tax invoices or file returns, which freezes the business. If cancellation happens, revocation must be sought through REG-21 within 90 days after clearing all dues. If you have received a suspension notice in T. Nagar, call +91 - 9600 606 444 immediately.

Question 3

How do I track the status of a grievance ticket or any ARN I have on the GST portal?

Accepted Answer

For grievance tickets, open selfservice.gstsystem.in and use Check Status by entering the ticket reference number; the screen shows whether it is open, under processing or resolved, with the resolution comments. For applications filed on the main portal, log in and use Services, then Track Application Status, choosing the module and entering the ARN, or open My Applications to see every application with its case detail folder, notices and replies in one place. Diarise every ARN the day it is generated, because reply windows run from portal timestamps. ChennaiGST maintains an ARN tracker for every client engagement.

Question 4

We sponsored a trade event. Does reverse charge apply to the sponsorship amount?

Accepted Answer

If your business is a body corporate or partnership firm, sponsorship services received are notified under Section 9(3) and you must pay 18 percent GST under reverse charge, with ITC available since sponsorship is a marketing expense. One recent change matters: with effect from 16 January 2025, sponsorship services provided by a body corporate were moved to forward charge, so if the event organiser billing you is a company, it now charges GST on its invoice and RCM does not apply. Where the provider is a proprietor, trust or society, RCM continues. Verify the organiser's constitution before booking the entry, and raise a self-invoice where the provider is unregistered.

Question 5

Is GST still charged on life and health insurance premiums?

Accepted Answer

No. With effect from 22 September 2025, premiums on all individual life insurance policies, including term plans, endowment plans and ULIPs, and all individual health insurance policies, including family floater and senior citizen plans, are exempt from GST. Reinsurance of these policies is also exempt. Earlier these premiums bore 18 percent tax. Note that the exemption applies to policies taken by individuals; certain group covers procured by businesses can still attract GST, and insurers can no longer claim input credit attributable to exempt policies. Policyholders should see the benefit directly in renewal notices.

Question 6

I buy electronics stock from distributors in other states. How does the IGST on purchases work for me?

Accepted Answer

Inter-state purchases carry IGST, which flows into your GSTR-2B once the distributor files GSTR-1, and it is fully available as input tax credit. When you sell locally in Tamil Nadu you charge CGST and SGST, and the law lets you use IGST credit against both, with the portal applying the set-off order automatically. There is no cost disadvantage in buying from out-of-state distributors, provided they are compliant filers; a distributor who files late delays your credit by a month. Track supplier filing discipline as part of vendor selection. Retailers in T. Nagar can call +91 - 9600 606 444 for a supplier compliance scorecard.

Question 7

If I open a bulk bag and sell rice loose by weight, is that sale taxable?

Accepted Answer

No. The 5% levy on specified food items applies only when they are supplied in pre-packaged and labelled form in packs up to 25 kilograms. When a retailer opens bulk stock and weighs out loose quantities against each customer's order, the supply is not of a pre-packaged commodity, so it remains exempt. What you cannot do is sell an intact labelled retail pack and bill it as loose. Keep purchase records showing bulk procurement and maintain the loose counter separately from the packed shelf, because officers test this distinction during inspections of grocery businesses. When in doubt on a product, call +91 - 9600 606 444.

Question 8

What GST rate applies to a goods transport agency: 5 percent or 18 percent?

Accepted Answer

Both exist, depending on the option exercised. The default position is 5 percent payable by the specified recipient under reverse charge, with no input tax credit to the GTA. Alternatively, a GTA may opt to pay tax itself under forward charge, either at 5 percent without input tax credit or at the higher rate with full credit, which was revised from 12 percent to 18 percent with effect from 22 September 2025. The with-credit option suits transporters with large spends on vehicles and tyres. Once the forward charge option is exercised for a year, it applies to all consignments of that year.

Question 9

Is GST payable on hostel or paying guest accommodation in T. Nagar?

Accepted Answer

A specific exemption effective 15 July 2024 covers accommodation services supplied at a value up to Rs.20,000 per person per month, provided the accommodation is supplied for a minimum continuous period of ninety days. Student hostels and working men's or women's PGs in T. Nagar charging within this limit for long stays are therefore exempt. Where the monthly charge exceeds Rs.20,000, or the stay is shorter than ninety days, the supply is taxable like ordinary accommodation. Operators should maintain stay records and agreements evidencing the duration, because the ninety-day condition is what officers test first during verification.

Question 10

I returned an advance because the deal was cancelled. What document do I issue?

Accepted Answer

It depends on how far the paperwork went. If you had issued only a receipt voucher and no tax invoice, you issue a refund voucher under Rule 51 when returning the advance, and the tax paid on that advance can be adjusted. If a tax invoice had already been issued, the cancellation is handled through a credit note under Section 34 instead. The refund voucher records the original receipt voucher reference, the amount refunded and the tax involved. Event managers and contractors see cancellations regularly, and using the wrong document between these two is a common reconciliation error.

Question 11

Are hospital and clinic charges exempt from GST?

Accepted Answer

Healthcare services provided by a clinical establishment, an authorised medical practitioner or paramedics are exempt from GST. This covers diagnosis, treatment and care for illness, injury, deformity or pregnancy in any recognised system of medicine in India, and includes transportation of patients by ambulance, which is separately exempt for any provider. Consultation fees, surgery charges, nursing and diagnostic services within this definition carry no GST, which is why hospitals do not charge tax on treatment bills. The exemption attaches to the nature of the service, not the size of the hospital, so both a large corporate hospital and a single-doctor clinic are covered.

Question 12

Our small lodge in T. Nagar gets bookings through online travel apps. Who pays the GST?

Accepted Answer

It depends on your registration status. If the lodge is registered, you charge GST on the accommodation and the platform collects TCS on payments routed through it, which you claim back on the portal. If the lodge is not liable to be registered, the law shifts the liability to the e-commerce operator itself under Section 9(5), so the app pays the tax on accommodation booked through it and the small lodge need not register merely because it lists online. Direct walk-in business remains within your threshold computation. Keep the platform agreements and statements, since they determine who reported the tax.

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GST Rulings and Notifications That Affect You — relevant to T. Nagar businesses

CBIC answers on what counts as pre-packaged and labelled

Mid-day meal and anganwadi catering treated as exempt

Compensation cess on cigarettes raised to restore pre-GST tax incidence

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