CA Varun Chawla
Place of Supply of Services
Place of Supply is a point to determine whether any supply is interstate supply or Intra-state supply of goods or services. If any supply is Interstate then Central Taxes has to be paid i.e. IGST or If Supply is intra state then local State taxes has to be paid i.e. CGST & SGST/UTGST.
Section 7 of IGST Act: Inter-state supply is when “location of supplier” and “place of supply” are not in the same state or same union territory.
Section 8 of IGST Act: Intra-state supply is when “location of supplier” and “place of supply” are in the same state or same union territory.
In general, Place of supply is the “location of recipient”. In IGST Act Location of Recipient is defined as:
So the place of supply generally means the Locations for which recipient has obtained GSTIN.
But in some specific cases place of supply will vary according to the transaction, and in such transaction location of recipient will not be consider for determining the place of supply.
As per section 12 of IGST Act: Such Cases are:
|S.No.||Nature of Service||Place of Supply|
|1.||Services related to Immovable property, including hotel accommodation||Location at which the immovable property is located or intended to be located if located outside India then location of the recipient|
|2.||Restaurant and catering services, personal grooming, fitness, beauty treatment and health care service||Location where these services are actually performed|
|3.||Training and performance appraisal||When provides to Registered Person: location of such Registered person
To Unregistered Person: location where the services are actually performed
|4.||Admission to an event (cultural, artistic, sporting, scientific, educational, entertainment) or amusement park||Place where the event is actually held or where the park or the other place is located|
|5.||Organization of an event (ultural, artistic, sporting, scientific, educational or entertainment event including supply of services in relation to a conference, fair, exhibition)||When provides to Registered Person: location of such Registered person
To Unregistered Person: location where the event is actually held if the event is held outside India: location of the recipient
|6.||Transportation of goods, including mails||When provides to Registered Person: location of such Registered person
To Unregistered Person: location at which such goods are handed over for their transportation
|7.||Passenger transportation||When provides to Registered Person: location of such Registered person
To Unregistered Person: place where the passenger embarks on the conveyance for a continuous journey
|8.||Services on board a conveyance||Location of the first scheduled point of departure of that conveyance for the journey|
|9.||Banking and other financial services||Location of the recipient of services on the records of the supplier or Location of the supplier of services if the location of the recipient of services is not available|
|10.||Insurance services||When provides to Registered Person: location of such Registered person
To Unregistered Person: location of the recipient of services on the records of the supplier
|11.||Advertisement services to the Government||The place of supply shall be taken as located in each of such States proportionate value in case of multiple States|
|12.||Telecommunication services||Services involving fixed line, circuits, dish etc.: Place of supply is the location of such fixed equipment.
In case of mobile/Internet post-paid services, it is the location of billing address of the recipient.
In case of sale of prepaid voucher, the place of supply is the place of sale of such vouchers. In other cases, it is the address of the recipient available in records
Where either Recipient of Provider is located outside India then section 12 will not be apply as section 13 of IGST specifically provides such provisions.
For general services, place of supply will be the place of for which recipient obtained GSTIN and if GSTIN not obtained then definition of Recipient of supply to be analyze.
For specific cases section 12 of IGST act to be analyze.