PLACE OF SUPPLY OF SERVICES UNDER IGST (WHERE SUPPLIER & RECIPIENT ARE IN INDIA): 

Under Section 12 of IGST – This section helps to determine the place of supply of services where both the supplier and recipient are located in India. 

General provisions – Under section 12(2) in relation to determination of place of supply of services 

Specific provisions – Under section 12(4 to14) in relation to determination of place of supply of services:

Place of Supply of Service

(where supplier & recipient are in India)

U/s 12(3)
U/s 12(4)
U/s 12(5)
U/s 12(6)
U/s 12(8)
Service Directly in relation to :
-Immovable property – architects, interior decorators, surveyors, engineers, any other related experts, or estate agents, grant of rights to use immovable property, or for carrying out or co-ordination of construction work  or
-Lodging accommodation –  hotel, inn, guest house, homestay, club or campsite including house boat  or any other vessel  or
-by way of accommodation in any immovable property- for organizing any marriage or reception or matters related thereto, official, social, cultural, religious or business function including services provided in relation to such function at such property; or
-Any ancillary services to the above
Place of Supply – Location of the property / boat / vessel located or intended to be located
                                    However
If location of the immovable property / boat / vessel is located or intended to be located outside India – Place of supply shall be the location of the recipient
If immovable property / boat / vessel located in more than one State  or UT – in proportion to the value for services separately collected or determined in terms of the contract or agreement  entered into in this regard or, in the absence of such contract or agreement, on such other basis as may be prescribed.
Supply of :
-Restaurant and catering services
-Personal grooming
-Fitness
-Beauty treatment
-Health service including cosmetic and plastic surgery
Place of Supply – Location of ‘actual’ performance of services
Supply of services in relation to  Training and Performance  appraisal  to:
Registered  person
Un-registered person
PLACE OF SUPPLY:
Registered  Recipient – Location of recipient
If Un-registered  Recipient  –  Location of ‘actual’ performance
Supply of service by way of Admission to:
-Cultural
-Artistic
-Sporting
-Scientific
-Educational
-Entertainment event  or
-Amusement park  or
Any other place
-Services ancillary to above
PLACE OF SUPPLY:
Location of event is actually held or the park  or other place  located
Supply of Services by way of transportation of goods, including mail or courier to Registered or Un-registered person
PLACE OF SUPPLY:
If Registered  Recipient – Location of recipient
If Un-registered  Recipient  –  Location at which such goods are handed over for their transportation

Place of Supply of Service

(where supplier & recipient are in India)

U/s 12(7)
U/s 12(9)
U/s 12(10)
Supply of service provided by way of:
(A) organization of a cultural, artistic, sporting, scientific, educational or entertainment event including supply of service in relation to a conference, fair, exhibition, celebration or similar events or
(B) Service ancillary to above or assigning of sponsorship to such events
to Registered or Un-registered person
PLACE OF SUPPLY:
Registered  Recipient – Location of recipient
If Un-registered  Recipient  –  Location where event is actually held
However
If event is held out side India – Place of supply shall be the location of the recipient
If event is held in more than one State or UT and a consolidated amount is charged – proportion to the value for services separately collected or determined in terms of the contract or agreement entered into in this regard or, in the absence of such contract or agreement, on such other basis as may be prescribed
Supply of services of passenger transportation (Return journey treated as separate journey to:
-Registered  Person or
-Un-registered Person
PLACE OF SUPPLY:
If Registered  Recipient – Location of recipient
If Un-registered  Recipient  – Place where the passenger embarks on the conveyance for a continuous journey
However

Where the right to passage is given for future use and the point of embarkation is not known at the time of issue of right to passage, the place of supply of such service shall be determined in the manner specified in sub-sections (2)
Supply of services on board a conveyance including-
-Vessel
-Aircraft
-train or
 -motor vehicle
PLACE OF SUPPLY: First scheduled point of departure of that conveyance for the journey
U/s 12(11) – Supply of telecommunication services including data transfer, broadcasting, cable and direct to home television (DTH) services to any person:

Place of Supply of Service

(where supplier & recipient are in India)

U/s 12(11)
(A). Supply of fixed telecommunication line, leased circuits, internet leased circuit, cable or dish antenna
PLACE OF SUPPLY: Location where above installed
Where the leased circuit is installed in more than one State or UT -proportion to the value for services separately collected or determined in terms of the contract or agreement entered into in this regard or, in the absence of such contract or agreement, on such other basis as may be prescribed.
(B). Supply of services of  post-paid mobile connection for telecommunication and internet
PLACE OF SUPPLY: Location of billing address of the recipient on record
(C). Supply of services of  Pre-paid mobile connection for telecommunication, internet and direct to home television (Through physical voucher or any other means): Through selling agent / re-seller / distributor  of subscriber identity module card or re-charge
By any person to the final subscriber
PLACE OF SUPPLY:
In 1st case:  Address of the selling agent or re-seller or distributor as per the record of the supplier at the time of supply
In 2nd case: location where such pre-payment is received or such vouchers are sold
Where pre-paid service is availed or recharge is made through electronic mode –  Place of supply shall be location of the recipient as per record of the supplier
(D). In any other cases not covered in (A), (B) and (C)
PLACE OF SUPPLY: Address of the recipient as per record of the supplier
If address of the recipient as per records of the supplier is not available – Place of supply shall be location of the supplier of service

In case of A, B and C – If where the address of the recipient as per the records of the supplier of services is not available, the place of supply shall be location of the supplier of services. 

Place of Supply of Service

(where supplier & recipient are in India)

U/s 12(12)
U/s 12(13)
U/s 12(14)
U/s 12(2)(a)
U/s 12(2)(b)
U/s 12(2)(c)
Supply of banking and other financial services including stock broking services to any person
PLACE OF SUPPLY:
If Registered  Recipient – Location of recipient on record
If location of recipient of services is not on records of the supplier – Place of supply shall be location of the supplier of service
Supply of insurance services  to-
– registered  person or
-Un-registered person
PLACE OF SUPPLY:
If Registered  Recipient – Location of recipient
If Un-registered  Recipient  – Location of recipient in supplier’s records
Supply of advertisement services involving ‘dissemination’ of the material supplied to the Government or a statutory body will be the location of such dissemination. Where it is identifiable to a specific State, then that would be the place of supply and where it disseminated over number of States, then a rule of proportion or any other reasonable basis is to be applied
For Supply of any other services to Registered Person except services mentioned under sub-section 3 to 14
PLACE OF SUPPLY: Location of recipient
For Supply of any other services to Un-Registered Person except services mentioned under sub-section 3 to 14
PLACE OF SUPPLY: location of the recipient where the address on record exists i.e. Location in  supplier’s records
For Supply of any other services to Un-Registered Person except services mentioned under sub-section 3 to 14
PLACE OF SUPPLY: Location of supplier If address not available

PLACE OF SUPPLY OF SERVICES UNDER IGST (WHERE SUPPLIER OR RECIPIENT IS OUTSIDE INDIA):

Under Section 13 of IGST – This section helps to determine the place of supply of services where the supplier OR recipient is outside India.

General provisions: Under section 13(2) in relation to determination of place of supply of services EXCEPT services specified in Sub-Section 3 to 13 – Place of supply of services shall be – location of recipient of services. 

If the location of the recipient is not known without employing any extraordinary means – location of the supplier of services.

Specific provisions – U/s 13(3 ) to (13) in relation to determination of place of supply of specified service:

Place of Supply of Services

(where supplier OR recipient is outside India)

U/s 13(3)
U/s 13(4)
U/s 13(5)
U/s 13(6)
U/s 13(7)
Clause (a) – Services in respect of Goods required to be made physically available by recipient or to a person acting on behalf of the supplier
Clause (b) – servicing requiring presence of receiver or person acting on his behalf
Place of Supply: Location where services actually performed
If service from remote location by electronic means – place where goods located at that time.
Note: This clause shall not apply where goods temporarily imported  for repairs and exported after repairs without put to use
Services supplied directly in relation to Immovable property – including by experts and estate agents, Supply of accommodation by a hotel, inn, guest house, club or campsite, grant of rights to use immovable property, Services for carrying out or coordination of construction work, including that of architects or interior decorators
Place of Supply: Place where immovable property is located or intended to be located.
Supply of service by way of Admission to, or organization of a cultural, artistic, sporting, scientific, educational or entertainment event, or a celebration, conference, fair, exhibition or similar events, and of services ancillary to such admission or organization.
Place of supply: Location of event is actually held
Where any service mentioned in sub-section 3 or 4 or 5 is supplied at more than one location including a location in the taxable territory
Place of Supply: location in the taxable territory
Where services mentioned in sub-section 3 or 4 or 5 or 6 are supplied at more than one State or UT
Place of Supply: proportion to the value for services separately collected or determined in terms of the contract or agreement entered into in this regard or, in the absence of such contract or agreement, on such other basis as may be prescribed

Place of Supply of Services

(where supplier OR recipient is outside India)

U/s 13(8)
U/s 13(9)
U/s 13(10)
U/s 13(11)
U/s 13(12)
U/s 13(13)
Service supplied by:
-by a banking company, or a financial institution, or a non-banking financial company, to account holders
-intermediary services
-services consisting of hiring of means of transport including yachts excluding aircrafts and vessels, up to a period of one month
 Place of Supply: Location of supplier of services
 note: Goods shall  include ‘Securities’ as defined in section 90(2) of CGST.
Transportation of goods, other than by way of mail or courier
Place of Supply: place of destination of the goods
Passenger  transportation service
Place of Supply: place where the passenger embarks on the conveyance for a continuous journey
Services provided on board  a conveyance during the course of a passenger transport operation, including services intended to be wholly or substantially consumed while on board
Place of Supply: first scheduled point of departure of that conveyance for the journey
Online Information and Data Base access or
Retrieval Services
Place of Supply: Location of recipient of service
To prevent double taxation or non taxation, or for the uniform application of rules,  Govt. has power to notify any description of services or circumstances
Place of Supply: place of effective use and enjoyment of a service

In case of any further query/clarification, please feel free to contact me at abs.bhardwaj@gmail.com. I shall be pleased to clarify any pertinent aspect.

(This article is based on my personal opinion and I will not be responsible for any loss due to follow the above.)

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Tags : goods and services tax (2790) GST (2376) IGST (67)

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