Case : Mr. A of Maharashtra supplied goods to Mr. B of West Bengal for Rs. 1,00,000.Determine place of supply and nature of transaction if Mr A supplied goods at the place of Mr. B.

Answer : As per section 10(1)(a), In the above case, where movement of goods is by supplier i.e. Mr. A, Place of supply shall be the location of goods where movement for delivery terminates i.e. Place of Mr. B i.e. West Bengal.Thus the following can be derived for the above transaction :-

  • Place of supply : West Bengal
  • Location of supplier : Maharashtra
  • Nature of Transaction : Inter- state
  • GST : IGST 

Case : Mr. A of Maharashtra supplied goods to Mr. B of Delhi for Rs. 1,00,000 on the request of Mr. X of West Bengal. Determine place of supply and nature of transaction.

Answer : As per section 10(1)(b), in the above case, Mr. X of West Bengal would be considered as the deemed recipient and place of supply shall be the Principal place of business of Mr. X i.e. West Bengal.

It is a case of Bill to – Ship to wherein, Mr. A will raise the bill to Mr. X of West Bengal and Ship to Mr. B of Delhi. Thus the following can be derived for the above transaction :-

  • Place of supply : West Bengal
  • Location of supplier : Maharashtra
  • Nature of Transaction : Inter- state
  • GST : IGST 

However, Mr. X will raise a direct bill on Mr. B as per Section 10 (1)(a). 

Case : Mr. M of Maharashtra opens a showroom in Maharashtra with a pre-installed inverter from M/s XYZ enterprises of Bangalore.  Determine place of supply.

Answer :As per section 10(1)(c), in the above case, Place of supply shall be the location of such immovable goods i.e. Maharashtra. 

Case : Mr. M of Maharashtra opens a branch in Delhi. He purchases a lift to be installed from M/s XYZ enterprises of Bangalore.  Determine place of supply.

Answer : As per section 10(1)(d), in the above case, Place of supply shall be the place of such installation i.e. Delhi. 

Case : The Supplier i.e. M/s ABC LLP is authorised to supply foods and other items in some trains departed from New Delhi and Kolkata.

Answer : As per section 10(1)(e), in the above case, Place of supply shall be the location when the goods are taken on board i.e. New Delhi. 

Case : XYZ imported certain goods from Dubai to it’s place of business in Kolkata.

Answer : As per section 11, in the above case, Place of supply shall be the location of the importer i.e. Kolkata

Case: XYZ exported certain goods from Maharashtra to Singapore.

Answer : As per section 11, in the above case, Place of supply shall be the outside India i.e.Singapore 

Case : Mr. X ( CA) registered in West Bengal makes supply of service to his client registered in Delhi. Determine the place of supply.

Answer : As per section 12(2), in the above case, Place of supply shall be the location of recipient where he is registered i.e. Delhi 

Case : A business man registered in Delhi visits Bangalore to attend the summit in regard of his business. He stays in a Hotel. Determine the Place of Supply.

Answer : As per section 12(3), in the above case, Place of supply shall be the . place where the Hotel is located i.e. Bangalore. 

Case : A Company of Mumbai contracts with a beauty salon firm of Delhi for dressing and beauty work of their models in Mumbai. Determine the Place of Supply.

Answer : As per section 12(4), in the above case, Place of supply shall be the . place where the service is performed i.e. Mumbai. 

Case : PQR of Kolkata imparts GST training to accounts and finance personal of XYZ of Assam at the company’s registered office. Determine the Place of Supply.

Answer : As per section 12(5), in the above case, Place of supply shall be location of such registered i.e. Assam. 

Case : Mr. B of New Delhi buys a ticket for amusement park located in Kolkata. Determine the Place of Supply.

Answer : As per section 12(6), in the above case, Place of supply shall be location of the park i.e. Kolkata. 

Case : Mega Events an event management company at New Delhi organises an award function for a merchant registered in Gujrat at Mauritius. Determine the Place of Supply.

Answer : As per section 12(7), in the above case, Place of supply shall be location of registered person i.e. Gujrat. 

Case : Mr. Amar (registered person in New Delhi) travels from Mumbai to Bangalore in Indigo. Mr. Amar has brought the tickets for the journey from Indigo’s registered office in New Delhi. Determine the Place of Supply.

Answer : As per section 12(9), in the above case, Place of supply shall be New Delhi. 

Case : Mr. X is traveling from Delhi to Mumbai in an Air jet Flight. He desires to watch an English movie during the journey by making necessary payments. Determine the Place of Supply.

Answer : As per section 12(10), in the above case, Place of supply shall be the first scheduled point i.e.  New Delhi. 

Case : Mr. X of Maharashtra gets a landline phone installed at his home from BSNL Ltd. Determine the Place of Supply.

Answer : As per section 12(11)(a), in the above case, Place of supply shall be the location where such instrumentis installedi.e.  Maharashtra. 

Case : Mr. A of Maharashtra buys a prepaid card from a selling agent in New Delhi. Determine the Place of Supply.

Answer : As per section 12(11)(c), in the above case, Place of supply shall be the address of the selling agent or re-seller or distributor i.e.  New Delhi. 

Case : Mr. X of Kolkata withdraws money from ATM in Punjab. As the number of free transactions was exceeded, the bank charged extra fees for the same. Determine the Place of Supply.

Answer : As per section 12(12), in the above case, Place of supply shall be Kolkata if address of Mr. X exists in the record of Bank, otherwise, the place of supply would be the location of the supplier i.e. Punjab. 

Case : Mr. X of Kolkata (unregistered) goes to her native place in Bihar and buys medical insurance policy for her parents from Safety Insurers registered in Bihar. Determine the Place of Supply.

Answer : As per section 12(13), in the above case, Place of supply shall be Location of the recipient of services, i.e. address of the parents, Bihar.

Case : ABC has issued a release order to MN display of advertisements relating to ‘Ujjwal’ scheme on the railway tickets that are sold from all the stations of Madhya Pradesh and Chhattisgarh. Determine place of supply.

Answer : As per section 12(14), in the above case, Place of supply shall be Madhya Pradesh and Chhattisgarh.

Case : The Delhi based professional firm renders services to the company of London by way of detailed report of feasibility of business in India. Determine the place of supply.

Answer : As per section 13(2), in the above case, Place of supply shall be London.

Case : The Bangalore based IT company renders services to the London based Company from its office in Bangalore to start a machine equipped with digital software.Such machine is also situated in the office of London based Company.  Determine the place of supply.

Answer : As per section 13(3)(a), in the above case, Place of supply shall be London.

Case : Mr X of Kolkata, a director of XYZ productions have imported beauty services from Dubai. Determine the place of Supply.

Answer : As per section 13(3)(b), in the above case, Place of supply shall be Kolkata.

Case : XYZ private limited has contracted with Mr. B of Dubai to construct  a particular resort in Goa. Determine the place of Supply.

Answer : As per section 13(4), in the above case, Place of supply shall be Goa.

Case : A firm located in USA organised a road show in Jaipur. Determine the place of Supply.

Answer : As per section 13(5), in the above case, Place of supply shall be Jaipur. 

Case : An Indian firm provided technical inspection service for a newly incorporated product of an overseas firm. 20% testing was carried out in Maharashtra. Determine the place of Supply.

Answer : As per section 13(6), in the above case, Place of supply shall be Maharashtra. 

Case : A firm located in Kolkata is providing car testing service for Mr Y whose one car is tested in Delhi and another car is tested in Andaman and Nicobar Islands. Determine the place of Supply.

Answer : As per section 13(7), in the above case, Place of supply shall be Delhi and Andaman and Nicobar Islands both.

Examples on Rule 4 of IGST Act [u/s 12(3)]

llustration 1: A hotel chain X charges a consolidated sum of Rs.30,000/- for stay in its two establishments in Delhi and Agra, where the stay in Delhi is for 2 nights and the stay in Agra is for 1 night. The place of supply in this case is both in the Union territory of Delhi and in the State of Uttar Pradesh and the service shall be deemed to have been provided in the Union territory of Delhi and in the State of Uttar Pradesh in the ratio 2:1 respectively. The value of services provided will thus be apportioned as Rs.20,000/- in the Union territory of Delhi and Rs.10,000/- in the State of Uttar Pradesh .

Illustration 2: There is a piece of land of area 20,000 square feet which is partly in State S1 say 12,000 square feet and partly in State S2, say 8000 square feet. Site preparation work has been entrusted to T. The ratio of land in the two states works out to 12:8 or 3:2 (simplified). The place of supply is in both S1 and S2. The service shall be deemed to have been provided in the ratio of 12:8 or 3:2 (simplified) in the States S1 and S2 respectively. The value of the service shall be accordingly apportioned between the States.

 Illustration 3: A company C provides the service of 24 hours accommodation in a houseboat, which is situated both in Kerala and Karnataka inasmuch as the guests board the house boat in Kerala and stay there for 22 hours but it also moves into Karnataka for 2 hours (as declared by the service provider). The place of supply of this service is in the States of Kerala and Karnataka. The service shall be deemed to have been provided in the ratio of 22:2 or 11:1 (simplified) in the states of Kerala and Karnataka, respectively. The value of the service shall be accordingly apportioned between the States.]

Rule 5 of IGST Act[u/s 12(7)]
Illustration: An event management company E has to organise some promotional events in States S1 and S2 for a recipient R. 3 events are to be organised in S1 and 2 in S2. They charge a consolidated amount of Rs.10,00,000 from R. The place of supply of this service is in both the States S1 and S2. Say the proportion arrived at by the application of generally accepted accounting principles is 3:2. The service shall be deemed to have been provided in the ratio 3:2 in S1 and S2 respectively. The value of services provided will thus be apportioned as Rs. 6,00,000/- in S1 and Rs. 4,00,000/- in S2.

Rule 6 of IGST Act{u/s 12(11)}

Illustration 1: A company T installs a leased circuit between the Delhi and Mumbai offices of a company C. The starting point of this circuit is in Delhi and the end point of the circuit is in Mumbai. Hence one point of this circuit is in Delhi and another in Maharashtra. The place of supply of this service is in the Union territory of Delhi and the State of Maharashtra. The service shall be deemed to have been provided in the ratio of 1:1 in the Union territory of Delhi and the State of Maharashtra, respectively.

Illustration 2: A company T installs a leased circuit between the Chennai, Bengaluru and Mysuru offices of a company C. The starting point of this circuit is in Chennai and the end point of the circuit is in Mysuru. The circuit also connects Bengaluru. Hence one point of this circuit is in Tamil Nadu and two points in Karnataka. The place of supply of this service is in the States of Tamil Nadu and Karnataka. The service shall be deemed to have been provided in the ratio of 1:2 in the States of Tamil Nadu and Karnataka, respectively.

Illustration 3: A company T installs a leased circuit between the Kolkata, Patna and Guwahati offices of a company C. There are 3 points in this circuit in Kolkata, Patna and Guwahati. One point each of this circuit is, therefore, in West Bengal, Bihar and Assam. The place of supply of this service is in the States of West Bengal, Bihar and Assam. The service shall be deemed to have been provided in the ratio of 1:1:1 in the States of West Bengal, Bihar and Assam, respectively.]

Rule 7 of IGST Rules[u/s 13(7)]

Illustration-1: A company C which is located in Kolkata is providing the services of testing of a dredging machine and the testing service on the machine is carried out in Orissa and Andhra Pradesh. The place of supply is in Orissa and Andhra Pradesh and the value of the service in Orissa and Andhra Pradesh will be ascertained by dividing the value of the service equally between these two States.

Illustration-2: A company C which is located in Delhi is providing the service of servicing of two cars belonging to Mr. X. One car is of manufacturer J and is located in Delhi and is serviced by its Delhi workshop. The other car is of manufacturer A and is located in Gurugram and is serviced by its Gurugram workshop . The value of service attributable to the Union Territory of Delhi and the State of Haryana respectively shall be calculated by applying the ratio of the invoice value of car J and the invoice value of car A, to the total value of the service.

 Illustration-3: A makeup artist M has to provide make up services to an actor A. A is shooting some scenes in Mumbai and some scenes in Goa. M provides the makeup services in Mumbai and Goa. The services are provided in Maharashtra and Goa and the value of the service in Maharashtra and Goa will be ascertained by applying the generally accepted accounting principles.]

 Declaimer:   The contents of this document are solely for informational purpose. It does not constitute professional advice or a formal recommendation. While due care has been taken in preparing this document, the existence of mistakes and omissions herein is not ruled out. The author does not accept any liabilities for any loss or damage of any kind arising out of any inaccurate or incomplete information in this document nor for any actions taken in Reliance thereon. No part of this document should be distributed or copied without express written permission of the author.

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