Swathi Corporation is a Public Sector Undertaking registered in Karnataka. For entertainment events in Bengaluru and at Mumbai, Swathi has given…

A Public Sector Undertaking is required to deduct tax @ 2% (on inter-State supplies) from payment made to the supplier of taxable services where the total value of such supply, excluding tax indicated in the invoice, under a contract, exceeds - 2,50,000. Value of supplies excluding tax are 10,50,000 (₹ 12,39,000 × 100/118) and 15,50,000 (₹ 18,29,000 × 100/118) Further, in the given case, since the location of supplier is Maharashtra and place of supply of services provided by Mr. Mast Nath to Swathi Corporation is the location of recipient, viz. Karnataka, said services provided at both Mumbai and Bengaluru events are inter-State supplies. Accordingly, in the given case, Swathi Corporation is required to deduct tax as follows: (i) 10,50,000 × 2% = 21,000 (IGST) (ii) 15,50,000 × 2% = 31,000 (IGST)