In GST it is very important to identify place of supply of goods and services so that appropriate type of GST (IGST/CGST/SGST) can be imposed. There may be various kinds of place of supply of goods and services i.e. Intrastate Supply, Interstate supply, Export and Import etc.
Section 2(86) of the CGST Act, 2017 does not explain about rule to determine the place of supply of goods and services. It merely states that “Place of Supply” means the place of supply as referred to Chapter V of the IGST Act, 2017.
IGST RULE FOR PLACE OF SUPPLY OF GOODS AND SERVICES
In order to study the rule to determine the place of supply of goods and serviced we have to refer the following provisions of Chapter-V of IGST Act, 2017.
| Section | Description |
| PLACE OF SUPPLY OF GOODS | |
| 10 | Determination of place of supply of goods within India |
| 11 | Determination of place of supply of goods-import into India and export out of India |
| PLACE OF SUPPLY OF SERVICES | |
| 12 | Determination of place of supply of services where both supplier and recipient are within India |
| 13 | Determination of place of supply of services where supplier or recipient are outside India |
PLACE OF SUPPLY OF GOODS
Determination of place of supply of goods within India (Section-10)
| Section | Particulars | Place of supply |
| 10(1)(a) | Where the supply involves movement of goods, whether by supplier or by any other person | Location of the goods at the time at which the movement of goods terminates for delivery to the recipient. |
| 10(1) (b) | Where the goods are delivered by the supplier to a recipient or any other person, on the direction of a third person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to the goods or otherwise. | Principal place of business of third person giving direction of delivery of goods. |
| 10(1)© | Where the supply does not involve movement of goods, whether by the supplier or the recipient. | Location of such goods at the time of delivery to the recipient. |
| 10(1)(d) | Where the goods are assembled or installed at site | Place of such installation or assembly. |
| 10(1)(e) | Where goods are supplied on board a conveyance, including a vessel, an aircraft, a train or a motor vehicle | The location at which such goods are taken on board. |
| 10(2) | Where the place of supply of goods cannot be determined | Shall be determined in such a manner as may be prescribed. |
Determination of place of supply of goods-import into India and export out of India (Section-11)
| Section | Particulars | Place of supply |
| 11(a) | Goods imported into India | Location of importer |
| 11(b) | Exported from India | Location outside India |
PLACE OF SUPPLY OF SERVICES
Determination of place of supply of services where both supplier and recipient are within India (Section-12)
| Section | Particulars | Place of supply |
| GENERAL RULE | ||
| 12(2)(a) | Where supply of services made to registered person | Location of recipient of service |
| 12(2) (b)(i) | Where supply is made to an unregistered person where address is available on record. | Place of where address is available on record |
| 12(2) (b)(ii) | Where supply is made to an unregistered person where address is not available on record. | Location of the supplier |
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| Section | Particulars | Place of supply |
| SPECIFIC RULE | ||
| 12(3(a) | Supply of those services which are directly related to an immoveable property, including services provided by architects, interiordecorators, surveyors, engineers and other related experts or estate agents, any services provided by way of grant of rights to use immoveable property or for carrying out or co-ordination of construction work. | Location of immoveable property in India.
If the location of immoveable property is out site India then location of recipient of service. |
| 12(3)(b) | Supply of service provided by way of lodging accommodation by hotel, guest house, home stay, club or campsite, by whatever name called and including a house boat or any other vessel. | Location of hotel, guest house, home stay, club or campsite, housing boat or vessel in India.
If the location of above properties are out site India then location of recipient of service. |
| 12(3)(c) | Supply of service provided by way of accommodation in any immoveable property for organizing any marriage, reception or matters related thereto, official, social, cultural, religious or business function including services provided in relation to such function at such property. | Location of immoveable property in India.
If the location of immovable property is out site India then location of recipient of service. |
| 12(3)(d) | Supply of any services ancillary to a,b,c above | Same as a,b,c above |
| Explanation: Where the immovable property or boar or vessel is located in more than one state or union territory, the supply of service shall be treated as made in each of the respective states or union territories, in proportion to the value for services separately collected or determined, in terms of the contract or agreement entered into this regard or, in the absence of such contract or agreement, on such other reasonable basis as may be prescribed. | ||
| 12(4) | Supply of service provided by restaurant and catering services, personal grooming, fitness, beauty treatment, health service including cosmetic and plastic surgery | Location of the place where services are actually performed. |
| 12(5) | Supply of service provided by way of training and performance appraisal to a registered person | Location of the registered person |
| Supply of service provided by way of training and performance appraisal to a un-registered person | Location of the place where service is actually performed. | |
| 12(6) | Supply of service provided by way of admission to a cultural,artictic, sporting, scientific, educational, or entertainment event or amusement park or any other place and services ancillary thereto. | Location of the place where the event is actually held or where the park or the place is actually situated. |
| 12(7)(a) | Supply of services provided by way of organizing of a cultural, sporting, scientific, and educational or entertainment event including supply of service in relation to a conference, fair, exhibition, celebration or similar event. | Location of the registered recipient of service.
In case recipient is not registered then place where the event is actually held. In case place where event actually held is outside India then place of recipient of service. |
| 12(7)(b) | Supply of services ancillary to organizing of any one of the events or services referred to in clause (a), or assigning of sponsorship to such events | -Do- |
| Explanation: Where the event is held in more than one state or union territory, and a consolidated amount is charged for supply of services relating to such event, the place of supply of such service shall be treated as made in each of the respective states or union territories, in proportion to the value for services separately collected or determined, in terms of the contract or agreement entered into this regard or, in the absence of such contract or agreement, on such other reasonable basis as may be prescribed. | ||
| 12(8) | Supply of services by way of transportation of goods including by mail or courier. | Location of registered recipient.
In case recipient is unregistered –Place where the goods is handed over. |
| 12(9) | Supply of passenger transportation service | Location of registered recipient.
Where the recipient of service is not registered with GST- Place where he embarked to vehicle Provided that 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 accordance with the provision of section 12(2) i.e. general rule. |
| Explanation: For the purpose of this subsection, the return journey shall be treated as separate journey even if the right to passage for onward and return journey is issued at the same time. | ||
| 12(10) | Supply of service on board a conveyance including a vessel, an air craft, a train or motor vehicle | Location of the first schedule departure of the conveyance for the journey. |
| 12(11)(a) | Supply of services by way of fixed telecommunication line, leased circuits, and internet leased circuit, cable or dish antenna. | Location where the telecommunication line, leased circuit, cable connection or Dish Antenna is installed. |
| 12(11)(b) | Supply of services by way of post paid mobile connection and internet services | Location of billing address of recipient of service. |
| 12(11)© | Supply of service by way of pre-payment mobile connection, internet and DTH through voucher or any other means. | Location of selling agent, or re-seller, or distributor
In case voucher is sold by any person to the final subscriber, the location where such pre-payment is received or voucher is sold. |
| 12(11)(d) | Supply of other services related to supply of telecommunication services including data transfer, broad casting and DTH and not related with 12(11)(a) to 12(11)(c) | Address of recipient of service. if address is not available then place of supplier. |
| 12(12) | Supply of services by bank and any other financial institution including stock broking service | -Do- |
| 12(13) | Supply of Insurance Service | Location of recipient if it is registered otherwise address as available on the record of the supplier. |
| 12(14) | Supply of advertisement services to the Central Government, State Government or local authorities | Location of the office of the respective government and local authority. |
Determination of place of supply of services where supplier or recipient are outside India (Section-13)
| Section | Particulars | Place of supply |
| GENERAL RULE | ||
| 13 (2) | All services which are not specifically mentioned in section 13(3) to 13(13) | Location of the recipient of service
where location of recipient is not available then location of supplier of service. |
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| Section | Particulars | Place of supply |
| SPECIFIC RULE | ||
| 13(3)(a) | Supply of services with respect to the goods that are required to be made physically available. | Location where the goods are physically present. |
| 13(3)(b) | Supply of services which require physical presence of recipient or agent of recipient with supplier of service | Location where the services is physically provided. |
| 13(4) | Supply of services which is directly related with immoveable property | Location of immoveable property. |
| 13(5) | Supply of services by way of admission to certain events | Location where events are actually held. |
| 13(6)& 13(7) | Supply of services as referred in section 13(3) to 13(5) is supplied both in foreign countries and in India. | Location in India. |
| 13(8) | Supply of service by banking company, NBFC, Intermediaries, hiring of yacht for 1. | Location of service providers. |
| 13(9) | Supply of service by way of transportation of goods other than courier and mail | Destination of the goods. |
| 13(10) | Supply of passenger transportation service | Location where passenger embarks. |
| 13(11) | Supply of service on board a conveyance. | Location from where the conveyance started its journey. |
Author Bio
My company does repair services works on vessels. Our engineers repairs engines & other parts.
My doubt:-
What will be POS if they onboard on vessel from Mumbai Port and disembark at Cochin Port, during sailing they have completed engine repair work.
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