How to determine Place of Supply of Services under GST- Part I

Earlier we had discussed about Place of Supply of Goods, now we are going to discuss about the Place of Supply of Services.  Section 12 of IGST Act laid down the provisions to determine the place of supply for services, here in this Part-I, we’ll discuss the provisions where the location of supplier and recipient is located in India.

Place of Supply of Services where location of supplier and recipient is in India

As a general rule, the place of supply of services shall be determined as below except some specific services:

• Supply made to a registered person – Location of such person
• Supply made to an unregistered person –
  • If address is available – Location of the recipient
  • For other cases – Location of the supplier

Place of Supply of Specific Services:

• Services related to Immovable property – Place of supply of is the location of the immovable property when such services –
  • Provided by architects, interior decorators, surveyors, engineers and other related experts or estate agents
  • Provided by way of grant of rights to use immovable property or for carrying out or co-ordination of construction work
  • Provided by way of lodging accommodation by a hotel, inn, guest house, home stay, club or campsite, by whatever name called, including a house boat or any other vessel is located or intended to be located
  • Provided by way of accommodation for organising 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
  • Any ancillary services related to the services mentioned above

Note: If the location of the immovable property or boat or vessel is located or intended to be located outside India, the place of supply shall be the location of the recipient.

• The place of supply is the location, where the below services are actually performed:
  • Restaurant and catering services
  • Personal grooming
  • Fitness
  • Beauty treatment
  • Health services including cosmetic and plastic surgery

• Services related to Training and Performance appraisal:
  • Provided to a registered person – Location of such person
  • A person other than registered person – Location where the services are actually performed

• Services by way of admission to and services related to
  • Cultural event
  • Artistic event
  • Sporting event
  • Scientific event
  • Educational event
  • Entertainment event
  • Amusement park
  • Any other place

Place of supply for the above services is the place where the event is actually held or where the park or such other place is located

• Services by way of organisation of the below:
  • Cultural event
  • Sporting event
  • Scientific event
  • Educational event
  • Entertainment event
  • Services related to a conference, fair, exhibition, celebration or similar events

Or services ancillary to organisation of the above events or services or assigning of sponsorship to such events –

• To a registered person – place of supply is the location of such person
• To a person other than registered person – place of supply is the location where the event is actually held – if the event is held outside India, the place of supply shall be the location of the recipient

• Services by way of transportation of goods including mail or courier
  • To a registered person – place of supply is the location of such person
  • To a person other than registered person – place of supply is the location at which such goods are handed over for their transportation

• Passenger transportation services
  • To a registered person – place of supply is the location of such person
  • To a person other than registered person – place of supply is the location where the passengers board on the conveyance for a continuous journey

Note: Where the right to passage is given for future use and the point of boarding is not known at the time of issue of passage – the place of supply is determined according to section 12(2)

The return journey shall be treated as a separate journey even if the right to passage for onward and return journey is issued at the same time.

• Services on board
  • The place of supply for the services on board a conveyance, including a vessel, an aircraft, a train or a motor vehicle – the location of the first scheduled point of departure of that conveyance for the journey

• Telecommunication Services

The place of supply for telecommunication services including data transfer, broadcasting, cable and direct to home television services to any person shall be determined as below:

• Fixed telecommunication line, leased circuits, internet leased circuit, cable or dish antenna – place of supply is the location of where these line, circuits, cable or dish are all installed
• Mobile connection for telecommunication and internet services provided on post-paid basis – place of supply is the billing address of the recipient as per the record of the service provider
• Mobile connection for telecommunication and internet services and direct to home television services provided on pre-payment basis through a voucher or any other means –
  • Through a selling agent or a re-seller or a distributor or a recharge voucher – place of supply is the address of such selling agent or re-seller or distributor as per the record of the service provider
  • Through any other person to the final subscriber – place of supply is the location where the payment is received or voucher is sold
  • In other cases, place of supply is the address of the recipient as per the records of the service provider, if the address is not available, place of supply is the location of the service provider
  • For online recharges, place of supply is the location of the recipient of services as per the records of service provider

• Banking and other Financial Services

The place of supply for banking and other financial services including stock broking services to any person is the location of the recipient of services as per the records of the supplier of services, if the address is not available; the place of supply is the location of the supplier.

• Insurance services
  • To a registered person – the place of supply is the location of such person
  • To a person other than registered person – location of the recipient of services as per the records of the supplier of services

• The place of supply of advertisement services to governments is the place (State or Union territory where such services are provided