GST Model Law defines Location of recipient of service and Location of supplier of service for the purpose of GST.
Location of recipient of service [Section 2(64)]
‘Location of recipient of service’ means:
(i) where a supply is received at a place of business for which registration has been obtained, the location of such place of business;
(ii) where a supply is received at a place other than the place of business for which registration has been obtained, that is to say, a fixed establishment elsewhere, the location of such fixed establishment;
(iii) where a supply is received at more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the receipt of the supply; and
(iv) in absence of such places, the location of the usual place of residence of the recipient;
According to Rule 2(i) of Place of Provision Rules, 2012, ‘location of the service receiver’ means:
a) where the recipient of service has obtained a single registration, whether centralized or otherwise, the premises for which such registration has been obtained;
b) where the recipient of service is not covered under sub-clause (a):
(i) the location of his business establishment; or
(ii) where services are used at a place other than the business establishment, that is to say, a fixed establishment elsewhere, the location of such establishment; or
(iii) where services are used at more than one establishment, whether business or fixed, the establishment most directly concerned with the use of the service; and
(iv) in the absence of such places, the usual place of residence of the recipient of service.
‘Usual place of residence’ in case of a body corporate means the place where it is incorporated or otherwise legally constituted. In the case of telecommunication service, the usual place of residence shall be the billing address.
In GST law, it is proposed to have focus on place of business and business establishment. In case of receipt of supply of service at registered place, place of business shall be the location of service supplier. Where supply is received at a place which is not registered i.e., a fixed establishment elsewhere, location of service recipient will be such fixed establishment and not place of business.
Location of supplier of service [Section 2(65)]
‘Location of supplier of service’ means:
(i) where a supply is made from a place of business for which registration has been obtained, the location of such place of business ;
(ii) where a supply is made from a place other than the place of business for which registration has been obtained, that is to say, a fixed establishment elsewhere, the location of such fixed establishment;
(iii) where a supply is made from more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the provision of the supply; and
(iv) in absence of such places, the location of the usual place of residence of the supplier;
According to present Rule 2(h) of Place of Provision of Rules, 2012 ‘location of the service provider’ means-
a) where the service provider has obtained a single registration, whether centralized or otherwise, the premises for which such registration has been obtained;
b) where the service provider is not covered under sub-clause (a):
(i) the location of his business establishment; or
(ii) where the services are provided from a place other than the business establishment, that is to say, a fixed establishment elsewhere, the location of such establishment; or
(iii) where services are provided from more than one establishment, whether business or fixed, the establishment most directly concerned with the provision of the service; and
(iv) in the absence of such places, the usual place of residence of the service provider.
Thus the location in GST regime shall be based on place of business or fixed establishment, depending upon registration of place. Where service is supplied from more than one establishment, the location most directly concerned with supply shall be considered as location of supplier of service. Where it can not be identified as such, usual place of residence will be considered as the location of supplier of service.
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