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GST: Export where place of supply will be on performance basis

Section 13 (3) of the IGST Act, 2017 contains provisions relating to place of supply of certain services and the section prescribes that place of performance of the listed service would be place of supply.

(a) Service provided in respect of goods which are required to be made physically available to the supplier by the recipient of service in order to provide services.

Further the proviso states that in case the required services are provided from a remote location by electronic means, the place of supply shall be location where goods are situated at the time of supply of services.

Another proviso states that services supplied in respect of goods which are temporarily imported into India for repairs or for any other treatment or process and are exported after such repairs or treatment or process without being put to any use in India, other than which is required for such repairs or treatment or process is out of the purview of this section.

Example: ABC from China wants YYY from India to pack their goods (which ABC will send to YYY) and send them back. In this case though the location of recipient is outside India but it will not be export as place of performance of service is in INDIA.

2. Services supplied to an individual, represented either as the recipient of services or a person acting on behalf of the recipient, which require the physical presence of the recipient or the person acting on his behalf, with the supplier for the supply of services.

Further section 13 (5) of the IGST Act, 2017 provides that the place of supply of services supplied by way of admission to, or organisation 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 organisation, shall be the place where the event is actually held. This transaction will be chargeable to tax as it is performed in India.

Example: GGG from Europe hired an agency from India to organise an art event in Delhi.

Note: All above cases are applicable only when Supplier is from India and recipient is from outside India.

Source: IGST ACT, 2017 

Disclaimer: The entire contents of this article is solely for information purpose and have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation. It doesn’t constitute professional advice or a formal recommendation. The author has undertook utmost care to disseminate the true and correct view and doesn’t accept liability for any errors or omissions. You are kindly requested to verify & confirm the updates from the genuine sources before acting on any of the information’s provided herein above.

 About the author: Author is a CA and can be reached on cashagungandhi@gmail.com

(Republished With Amendments)

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