Provision of Place of Supply in GST- with examples

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	Location of the recipient if address available Location of supplier of services in other cases

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	Location of the recipient if address available Location of supplier of services in other cases

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