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Place of supply under GST (Summarized)

CA Hema Pandey 
on 23 November 2020

LinkedIn


Place of Supply is important to determine

  • Whether the supply is Interstate or Intrastate.
  • Resulting, whether SGST/UTGST plus CGST is leviable or IGST is leviable.

If an inter-state transaction is wrongly treated intra-state or vice-versa and tax paid accordingly, then it can be rectified. However, the procedural requirements increase and working capital will get blocked. Therefore, determining the Place of supply is of paramount importance.

Place of supply under GST (Summarized)

GOODS

Place of Supply of GOODS (Within India)

(Section 10 of IGST Act):-

Section

Transaction

Place of Supply

Example

10(1)(a)

When supply involves the movement of goods

Where the movement of goods terminates for delivery of recipient.

Mika of Punjab supplies television to Honey of Delhi then POS is Delhi.

10(1)(b)

Bill-to-Ship-to Transaction: -

When goods are delivered by the supplier to a recipient or any other person in direction of a third person, whether acting as an agent or otherwise.

Principal Place of Business of Such Third person.

If Mr. X of Haryana instruct Mr. Y of MP to send goods to Mr. Z of Delhi, the POS is Haryana (Mr. X’s Location)

10(1)(c)

Where the supply does not involve the movement of goods.

Location of such goods at the time of delivery of recipient

If Kailash buys a pre-furnished office from Kashi, then POS for such pre-installed furniture and fixture is that office.

10(1)(d)

Where goods are assembled or installed at the site

Place of Such installation or assembly takes place.

Zenia of Maharashtra gives a contract to Zeeshan of Andra Pradesh to install goods at Kerala, then POS is Kerala.

10(1)(e)

Where the goods are supplied on board, a conveyance including vessel, aircraft, train or motor vehicle

Location where such goods are taken on board

Amitabh takes goods on board in Assam- Gujrat train to sell them in a train journey, then POS is Assam where goods are taken on board and not the places where he actually sold them.

10(2)

Where POS of goods cannot be determined

POS shall be determined in a manner as may be prescribed

As may be prescribed

Place of Supply of GOODS (Imported into or Exported from India)

(Section 11 of IGST Act): -

Section

Transaction

Place of Supply

Example

11(a)

Import

Location of Importer

S (India) imported goods from China, POS is India

11(b)

Export

Place (Country) where goods are exported

P(India) exported goods to T(Pakistan), POS is Pakistan.

SERVICES

Place of Supply of SERVICES (Within India)

(Section 12 of IGST Act):-

Section

Transaction

Place of Supply

12(1)

This section applies to the supply of services where the location of Supplier and Place of supply of service is within India

12(2)

POS of services except services mentioned in Sub-clause (3) to (14)

 

(a)

Made to a registered person

Location of such person

 

(b)

Made to any other than a registered person: -

 

(b)(i)

The address exists on record of Supplier

Location of the recipient as per records

 

(b)(ii)

In any other case

Location of supplier

12(3)

(a)

In relation to the immovable property including work of the architect, interior decorators, surveyors, engineers, and other related experts or estate agents, the grant of rights to use immovable property or use of it for some construction work

Location where such immovable property or boat or vessel is located or intended to be located.

{Provided that if the location of immovable property or boat or vessel is located or intended to be located outside India, POS shall be the location of the recipient.}

(Explanation: -

Immovable property, or boat or vessel located in more than one state or union territory:

  1. In proportion of the value of service provided in that state or UT, or,
  2. As mentioned in the agreement, or,
  3. In absence of agreement, on such basis, as may be prescribed.
 

(b)

Lodging accommodation by way of hotel, inn, guest house, homestay, club including houseboat or vessel

 

(c)

Accommodation in any immovable property for organizing any marriage etc., or social, cultural, religious or business event including services provided in such function

 

(d)

Any ancillary services referred to in clause (a), (b), or (c)

12(4)

Restaurant and catering services, personal grooming, fitness, beauty treatment, health service including cosmetic and plastic surgery

Location where service is actually performed.

12(5)

Place of supply of services in relation to training and performance appraisal TO

 

(a)

A Registered person

Location of such person

 

(b)

Any other person

Where service is actually performed

12(6)

Admission to cultural, artistic, sporting, scientific, educational, entertainment, event or amusement park, or any event ancillary thereto.

  • Where Event is held, or,
  • Where the park is actually located

12(7)

(a)

Organization or cultural, artistic, sporting, scientific, educational or entertainment event including supply of services in relation to the conference, fair, exhibition, celebration or similar events, or,

 

(b)

Service ancillary to organize of any of the events

 

(i)

To a registered person

Location of such person

 

(ii)

To any other person

Where the event is actually held,

and if the event is held outside India, the place of supply shall be the location of the recipient.

12(8)

The Place of supply of services by way of transportation of goods, including mail or courier to,-

 

(a)

A registered person

Shall be the location of such person

 

(b)

Any other person

Location where such goods are handed over for transportation.

 

Provided where the destination of goods is outside India, the POS shall be the destination of such goods (i.e. outside India)

12(9)

The place of supply of passenger transport service to:-

 

(a)

A registered person

Location of such person

 

(b)

Any other person

Where passenger embarks on the conveyance for a continuous journey.

12(10)

Supply of services on board a conveyance including vessel, aircraft, train or motor vehicle

Location of 1st schedule point of departure of conveyance.

12(11)

The place of supply of telecommunication service including data transfer broadcasting, cable, and DTH television services:

 

(a)

Fixed telecommunication line, leased circuit, cable or dish antenna

Location where such line is installed

 

(b)

Post-paid mobile or internet connections

Address of recipient in records of the service provider.

 

(c)

Prepaid DTH or internet connection

   

(i)By a selling agent or distributor

Location of such agent or distributor.

   

(ii)By any other person

Place where such prepayment is received or voucher is sold.

 

(d)

In any other case, address of the recipient in records of the supplier, and where no record available, location of supplier of service.

12(12)

Banking, Financial or stock broking Services

POS is the address of the recipient in records of the service provider, location of supplier)

12(13)

Insurance Services

 

(a)

To a registered person

Location of such person

 

(b)

Any other person

Address of Service recipient of services on record of supplier.

12(14)

Place of Supply of advertisement services to Central Government, State Government, Statutory body or Local Authority

 

If the proportion mentioned in the agreement

In such proportion

 

In any other case

As may be prescribed

 

Place of Supply of SERVICES (Location of Service Provider or Service Recipient is outside India)

(Section 13 of IGST Act): -

Section

Transaction

Place of Supply

13(1)

This section applies to the supply of services where the location of the Supplier of service or location of the recipient of service is outside India.

13(2)

POS of services except services mentioned in Sub-clause (3) to (14)

 

(a)

Normally

Location of the recipient of service

 

(b)

If the Location of the recipient is not available

Location of supplier of service

13(3)

(a)

Goods which are required to be actually made available by the recipient of service.

(Example: PC repair)

Location where service is actually performed

 

If service provided at a remote location by electronic means, then the POS

will be the location of goods at the time of supply of services.

 

(b)

Where the presence of a person is required to provide the service to him by the supplier

(Example: Hairdresser)

Location where service is actually performed

13(4)

Service in relation to immovable property (Thumb rule)

Location where the immovable property is located or situated

13(5)

Admission to cultural, artistic, sporting, scientific, educational, entertainment, event or amusement park, or any event ancillary thereto.

Where Event is held

13(6)

If Services mentioned in subsection (3) or (4) or (5) is supplied at various location where one location is located in Taxable territory

POS is a taxable territory

13(7)

Where services are supplied to more than 1 state or UT

POS is each state or UT in the proportion of the agreement entered into, or on the basis as may be prescribed.

13(8)

(a)

Service by banking co, Financial institution or NBFC,

Location of Supplier of services

 

(b)

Intermediary Services,

 

(c)

Services consisting of hiring of means of transport, including Yacht but excluding aircraft and vessel up to the period of one month

13(9)

Goods transport service other than by mail or courier

Place of destination of such goods

13(10)

Passenger Transport service

Place where the passenger embarks for a continuous journey

13(11)

Supply of services on board a conveyance

First scheduled point of departure of that conveyance of journey

13(12)

Place of supply of Online Information or database access or retrieval services (OIDAR)

Location of the recipient of service

13(13)

In order to prevent double taxation or non-taxation, govt has the power to notify any description of service

Where the place of supply shall be a place of effective use or enjoyment of service.

 

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