pri Know Place of supply of Services under GST of these 12 services Know Place of supply of Services under GST of these 12 services

 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.

Inter-state supply:

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.

Intra-state supply:

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:

  • The location of recipient in relation to the location of supplier would determine the type of GST to be applied on the transaction. The location of recipient is usually a place of business for which GST registration has been obtained (In the case of B2B supply), where the supply is received.
  • If the supply is received at a place for which GSTIN not obtained, then the location of that place can be used as location of recipient.
  • If a supply is received at more than one place, then the location most directly concerned with the receipt of supply can be used as the location of recipient.
  • In the absence of any of the above, the location of the usual place of residence of the recipient can be used as location of recipient.

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.

Conclusion:

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.

Author Bio

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Location: delhi, New Delhi, IN
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15 Comments

  1. ravi says:

    what will be place of supply in case of product sell at store located at Delhi to the recipient of haryana and he is unregistered.

  2. SURAJIT DUTTA says:

    We are in Technical Testing and Analysis business and our Laboratory is on Kolkata, So place of service from kolkata only. Our clients from Bhutan asking for GST exemption against notification no. 09/2017 in “Chapter 99, Supply of services having place of supply in Nepal or Bhutan, against payment in Indian Rupees :Nil “. Please suggest tax applicability.

  3. G.S.CHANDRA SHAKER says:

    hi,
    What taxes should be levied for supply and installation of advertising signages at various states on account of P.O.Given by XYZ company for promoting their products .
    Say for example XYZ is located in Maharastra and Given purchase order to ABC in Telangana for Printed advertising boards and instructed to install to their distributors place at various states and with in state of ABC ,which taxes should be levied to supplies made out of TELANGANA and WITHIN TELANGANA state on account of XYZ instructions. kindly give information as per ACTS ,i.e,required accurate information

  4. Vasu says:

    We are hospitality service providers. We are raising Invoice for CGST & SGST only as IGST is not applicable to us. We also have customers from SEZ units who use our services and we give the bill for CGST & SGST. While uploading the invoice in GSTR 1 it shoes us to enter only IGST and also asks for SEZ with Payment or Without payment option. KIndly let me know which option to select and also how to enter the invoice in GSTR 1 because we have billed for CGST & SGST

  5. saurabh agarwal says:

    Sir, can you pls also share the details in respect with tour operators who are providing tour operator services to Foreign Nationals here in India. What will be the place of supply in case of a Rajasthan Tour operator providing tour operator service to foreign national at let say in Delhi or in MP.

  6. SMN says:

    Sir please clarify if services given under point 1 to point 5 are outside India and the contract is entered between registered and unregistered person in India.
    What will be tax implications ??

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