Under GST, there are three levels of Tax IGST, CGST & SGST/UTGST and based on the 'place of supply' and 'place of supplier' the respective tax will be levied. IGST is levied where transaction is inter-state, and CGST & SGST/UTGST are levied where the transaction is intra-state.
|
Particular |
Inter-State |
Intra-State |
|
In a transaction where: |
Both Place of supply and Location of Supplier is in different State/UT |
Both Place of supply and Location of Supplier is in same State/UT |
|
Tax to be Charged |
IGST |
CGST & SGST/UTGST |
Place/Location of Supplier:
Location of supplier is a place mentioned as a principal place of business on the GST registration certificate.
Place of Supply:
In case of Supply of Goods:
GST is based on the consumption pattern. The state where material is consumed will get the Tax. Hence, in crux we can say that place of supply will be the place where goods are consumed.
|
S.No. |
Nature of Supply of Goods |
Place of Supply |
Remark |
|
1. |
Where supply involves the movement of goods |
Location of the goods at the time at which movement of goods terminates for delivery to recipient |
Ram, Delhi, sells goods to Shyam, Jaipur, here place of supply would be Rajasthan as delivery terminates there. |
|
2. |
Where goods are delivered to the recipient, or any person on the direction of the third person by way of transfer of title or otherwise, it shall be deemed that the third person has received the goods. |
The principal place of business of such person |
This is a case of Ship to Bill to transaction. In this case, the principal place of Bill to person will be Place of Supply irrespective of movement of goods. Further, invoice is to be raised by Bill to person on Ship to person. |
|
3 |
No Movement of Goods |
Location of such goods at the time of delivery to the recipient |
Delivery of Goods on ex-shop basis |
|
4 |
Goods are assembled or installed at site |
The place where the goods are assembled or installed |
|
|
5 |
Goods are supplied on-board a conveyance |
The place where such goods are taken on board |
Goods sold in flight departed from Delhi, Place of Supply would be Delhi. |
|
6. |
Place of Supply cannot be determined |
In manner as may be prescribed |
|
|
7. |
Import |
Location of Importer |
Material Imported from China by XYZ Ltd.. The material to be consumed in different sub stations in Assam. Material to be transported from Kolkata port to Assam. In this case, in BOE IGST would be charged with place of supply Assam(location of importer) |
|
8. |
Export |
Location Outside India |
As material is to be consumed outside India, No GST |
In case of Supply of Service:
For understanding Place of Supply for services the following two concepts are very important namely:
- Location of the recipient of services
- Location of the supplier of services
|
S.No. |
CASE |
Location of Recipient |
Location of Supplier |
|
1. |
Supply is received/ made from a place of business for which registration obtained |
Such place of business |
Such place of business |
|
2 |
Supply is received / made from a place other than the place of registration |
Such fixed establishment |
Such fixed establishment |
|
3 |
Supply is received / made from more than one establishment (whether registered or fixed establishment) |
The location of the establishment most directly concerned with the receipt of the supply |
do |
|
4 |
In absence of such places |
The location of the usual place of residence of the recipient |
The location of the usual place of residence of the supplier |
General Rule for Place of Supply of Services:-
|
Supply of Services |
Place of Supply |
|
To a registered person |
Registered Location of service recipient |
|
To a unregistered person |
|
Example:
ABC Ltd. (Meghalaya) provides consultancy service to XYZ Ltd. (registered in Assam).
Place of Supply: Assam
Place of Supplier: Meghalaya
GST: IGST
ABC Ltd. (Registered in Meghalaya and Assam) provides consultancy service to XYZ Ltd. (registered in Assam).
Place of Supply: Assam
Place of Supplier: Assam
GST: CGST & SGST
ABC Ltd. (Meghalaya) provides consultancy service to XYZ Ltd. (Unregistered- Assam).
Place of Supply: Assam
Place of Supplier: Meghalaya
GST: IGST
ABC Ltd. (Meghalaya) provides consultancy service to XYZ Ltd. (Unregistered).
Place of Supply: Meghalaya
Place of Supplier: Meghalaya
GST: CGST & SGST
ABC Ltd. (Meghalaya) provides consultancy service to XYZ Ltd. at Assam (registered in Delhi).
Place of Supply: Delhi (location of service
recipient)
Place of Supplier: Meghalaya
GST: IGST
Place of Supply in case of Specific Services:-
|
S.No. |
Nature of Service |
Service- B2B /B2C |
Place of Supply |
|
1 |
Immovable property related services, including hotel accommodation |
Any |
Location where property located, if located outside India than location of recipient |
|
2 |
Restaurant, catering, fitness, beauty, health |
Any |
Location where services are actually performed |
|
3. |
Admission to an event or amusement park |
B2C |
Place where the event is actually held |
|
4. |
Services on Board a conveyance |
Any |
Location of the first schedule point of departure of that conveyance |
|
5. |
Banking and other financial services |
Any |
Location of the recipient of services on the record otherwise location of supplier of services |
|
6. |
Training and Performance appraisal |
B2B |
Location of such registered person |
|
B2C |
Location where service actually performed |
||
|
7. |
Organisation of an event |
B2B |
Location of such registered person |
|
B2C |
Location where event actually held; if outside India than location of recipient |
||
|
8. |
Transportation of goods, including mail |
B2B |
Location of such registered person |
|
B2C |
Location at which such goods are handed over for their transportation |
||
|
9. |
Insurance services |
B2B |
Location of such registered person |
|
B2C |
Location of the recipient of services on the records |
For rest of the services other than mentioned above, a General provision has been prescribed:
|
S.No. |
Description of Supply |
Place of Supply |
|
1 |
B2B |
Registered Location of service recipient |
|
2 |
B2C |
|
Examples:
|
Type |
Example |
Place of Supply |
Location of Supplier |
GST |
Remark |
|
Consultancy Services at sub-station of XYZ Ltd. regarding installation of some equipments |
ABC Ltd. (Meghalaya) provides consultancy services to XYZ Ltd. (Delhi) in Delhi |
Delhi (Location where goods are installed ) |
Meghalaya |
IGST |
|
|
Do |
ABC Ltd. (Meghalaya) provides consultancy services form a Branch in Delhi to XYZ Ltd. (Delhi) in Delhi. |
Delhi (Location where goods are installed ) |
Delhi |
CGST+SGST |
ABC Ltd. will have to take registration in Delhi as it has a fixed establishment in Delhi. |
|
Consultancy Services at sub-station of XYZ Ltd. regarding repair of some equipments |
ABC Ltd. (Meghalaya) provides consultancy services to XYZ Ltd. (Delhi) in Assam |
Assam (location of immovable property) |
Meghalaya |
IGST |
Invoice will be raised on XYZ Ltd. with GSTIN of Delhi and Place of Supply as Assam |
|
Do |
ABC Ltd. (Meghalaya) provides consultancy services form a Branch in Assam to XYZ Ltd. (Delhi) in Assam |
Assam (location of immovable property) |
Assam |
CGST+SGST |
Invoice will be raised on XYZ Ltd. with GSTIN of Delhi and Place of Supply as Assam. XYZ Ltd. will not be able to take ITC of SGST-Assam but can take ITC of CGST |
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