CA Sanjeev Kumar Swain
Article covers Place of Supply provisions under section 7, 8 9 & 10 of IGST Act and Time of Supply provisions under section 12, 13 & 14 of CGST Act.
The Place of Supply is covered in section 7, 8 9 & 10 of IGST Act.
In this article the author has tried to analyze the act and provides the contents of the act in a tabular module for better understanding and remembrance
Place of Supply of Goods
Section 7: In the case of movement of goods except in the case of imports and exports.
Section 7 determines the place of supply of goods other than supply of goods imported into or exported from India. The synopsis of the section is given in a tabular form for better understanding.
| Description | Place of Supply | Example | Place of Supply |
| Supply involves movement of goods by anybody (supplier, recipient, transporter ) | Location of goods at the time when the movement of goods terminates for delivery. | Ultratech cements sends cement bags from Chennai to Andhra Pradesh by truck | Andhra Pradesh |
| Goods are delivered on the direction of the third person. | Principal place of business of the third person. | Ultratech sends cement bags to L & T in Chennai on the instruction of EIL whose principal place of business is Telangana | Telangana |
| Goods does not involve movement of goods | Location of such goods at the time of delivery to the recipient. | Ultratech Chennai sells cement bags to L & T Hyderabad at Chennai. | Chennai |
| Goods are required to be assembled or installed at site | Place of such installation or assembly | L & T Chennai assembled its machinery for ABB Telangana at New Delhi | New Delhi |
| Goods are supplied at board a conveyance Ex: Vessel, aircraft, train, motor vehicle etc. | Location at which goods are taken on board. | Hoping Flight from Delhi to Tirupathi landed in Chennai and replenished itself with food articles at Chennai to be provided to passengers on board to Tirupathi. | Chennai. |
Where the place of supply of goods cannot be determined in any of the conditions mentioned above the place of supply will be as per the manner prescribed by Central Government.
Section 8: In the case of goods except imported or exported.
Section 8 determines the place of supply of goods in case of imports into or exported outside India. The synopsis of the section is given in a tabular form for better understanding.
| Description | Place of Supply | Example | Place of Supply |
| Goods imported into India | Location of the importer | L & T imports Machinery from Denmark to New Delhi | New Delhi |
| Goods exported from India | Location of the importer | L & T exports buses to Denmark from New Delhi | Denmark |
Place of Supply of Services
Section 9 determines the place of supply of services where the location of the supplier of service and location of recipient of service is in India.
| Description | Place of Supply | Example | Place of Supply |
| Services provided for or by an Immovable property.
Any services ancillary to the services in relation to any services on an Immovable property |
Location of the immovable property | a. Architect service by a person in New Delhi to a person in Tamil Nadu to construct a house in Gujarat
b. Hotel Service in Gujarat to a person from New Delhi c. Marriage Hall in Gujaratto a person from New Delhi Any services in relation to the marriage hall example : musical system in the marriage hall, food services |
Gujarat. |
| Immovable property. Boat, vessel located outside India | Location of the recipient | a. Architect service by a person in New Delhi to a person in Tamil Nadu to construct a house in USA
b. Architect service by a person in New Delhi to a person in USA to construct a house in Denmark |
a. Tamil Nadu
b. USA |
| Restaurant, catering, personal grooming, fitness, beauty treatment health services | Location where the services are performed | Catering services by a person in New Delhi to a person in Tamil Nadu at Gujarat
|
Gujarat |
| Admission to a cultural, artistic, sporting, scientific, educational, amusement park etc and any services in ancillary | Location where the event is being held | Live Concert by a person from Pakistan at Gujarat | Gujarat |
| Services on board a conveyance eg Ship, Aircraft, Train etc | Location of first schedule point of departure of the conveyance | Hoping Flight from Delhi to Tirupathi landed in Chennai and then to Tirupathi. | Delhi |
| Supply of advertisement services to the CG/SG/Statutory Body/Local Authority etc meant for identifiable states | Location of each of such states specific to each state in proportion to the amount attributable as per contract | Times of India has given some services to CG on Swach Bharat Abiyan and the agreement states charges are Rs 1 Lakh per page in each state. | All the places where the services are rendered in proposition |
| Banking & Financial Services including Stock broking | Whether location of recipient is availabile in bank records
Yes → Such Location No → Location of supplier of services |
1. ICICI gives services to L & T which as New Delhi as its address on ICICI records
2. ICICI Chennai issues DD for a person from Delhi who does not have account and collects DD Charges |
1. New Delhi
2. Chennai |
| Place of Supply of Insurance | Whether service recipient is registered
Yes → Recipient location No → Recipient location as per supplier records |
1. Max Life secures L & T office at its principal place of Business at Chennai
2. Max Life at Chennai secures an unregistered person who address as per Max Life is in Delhi
|
1. Chennai
2. Delhi |
| Supply of Telecommunications including data transfer, broadcasting, cable, DTH etc |
♦ Through Selling Agent, Reseller, Distributor of SIM Card or Recharge Voucher Address of the above as per supplier records ♦ Any other person Location where the prepayment is received. ♦ Any other case for prepaid Availability of address of the recipient as per supplier records Yes: Address of recipient No: Location of supplier of service |
1. BSNL Land line to Sanjeev at Hyderabad
2. BSNL Postpaid to Sanjeev residing at Chennai but address as Hyderabad as per BSNL records 3. Sanjeev is a BSNL prepaid Reseller sells in Chennai but the address in BSNL records is HYD 4. Sanjeev a resident of Delhi buys BSNL prepaid voucher at Chennai |
1. Hyderabad
2. Hyderabad 3. Hyderabad 4. Chennai |
| Transportation of goods | Whether service recipient is registered
Yes → Recipient location No → Location where goods are handed over |
1. DTDC Chennai provides courier services to BSNL (whose principal place of business is at Mumbai) at Chennai (Fixed establishment at Chennai)
2. DTDC Chennai provides courier services to Sanjeev an unregistered person for transporting goods from Chennai to Mumbai. |
1.Chennai
2. Chennai |
| Passenger Transportation | Whether service recipient is registered
Yes → Recipient location No → Location where passenger embark the journey *Return journey to be treated as separate journey. |
1. VRS Travels Chennai provides bus tickets to Sanjeev a registered person for commuting from Chennai to Mumbai. (Sanjeev’s principal place of business is Mumbai without any fixed establishment anywhere but usual place of residence is Mumbai)
2. VRS Travels Chennai provides bus tickets to Sanjeev an unregistered person for commuting from Chennai to Mumbai. |
1. Mumbai
2. Chennai |
| Services relating to training and performance appraisal | Whether service recipient is registered
Yes → Recipient location No → Location where Services are performed |
1. XYZ Trainers provides training to BSNL (whose principal place of business is at Mumbai) at Chennai (Fixed establishment at Chennai)
2. XYZ Trainers provides training to Sanjeev of Chennai an unregistered person at Mumbai. |
1. Chennai
2. Mumbai |
| Services by way of organization of an event and services ancillary to the same or assigning of sponsorship of any of the above events. | Whether service recipient is registered
Yes → Recipient location No → Location where Event is held.
|
1. XYZ organizes a cultural event for BSNL (whose principal place of business is at Mumbai) at Chennai (Fixed establishment at Chennai)
2. XYZ organizes a cultural event for Sanjeev of Chennai an unregistered person at Mumbai. |
1. Chennai
2. Mumbai |
| Services by way of organization of an event and services ancillary to the same or assigning of sponsorship of any of the above events outside India | Location of the recipient
|
Organization of an event at Singapore for L & T Chennai | Chennai
|
| Any other case | Whether recipient is registered
Yes → Recipient location No → Whether service recipient location is available with provider. Yes → Recipient location No → Supplier location |
Section 10 determines the place of supply of services where either the location of the supplier of service or location of recipient of service is outside India.
| Description | Place of Supply | Example | Place of Supply |
| Services provided for or by an Immovable property.
Any services ancillary to the services in relation to any services on an Immovable property |
Location of the immovable property | a. Architect service by a person in New Delhi to a person in Tamil Nadu to construct a house in USA
b. Hotel Service in USA to a person from New Delhi c. Marriage Hall in USA Any services in relation to the marriage hall example : musical system in the marriage hall, food services |
USA. |
| Services in relation to goods or individuals where physical availability of goods or individualare required with the supplier of services | Location where the services are actually performed.*except when the goods are temporarily imported into India for repairs and exported without using the same in India | a. L & T sends machinery to USA for repairs
b. Sanjeev goes to USA for Cosmetic surgery c. L & T repairs a machinery of AlbarkInc USA by bringing the same to India and again exporting the same without using in India. |
a. USA
b. USA c. USA |
| Services are provided from a remote location through electronic means | Location where the goods are situated at the time of supply of services | L & T Infotech Chennai repairs a Laptop in Germany sitting in Mumbai. | Germany |
| Where any service in respect to the above three are supplied at more than one location, including a location in the taxable territory, it place of business shall be the location in the taxable territory where the greatest proportion of the service is provided. | |||
| Admission to a cultural, artistic, sporting, scientific, educational, amusement park etc and any services in ancillary | Location where the event is being held | Live Concert by a person from Chennai at USA
|
USA |
| Services of a Banking company, Financial Institution, NBFC to Account holders and intermediary Services, Hiring of means of transport other than vessels (except yachts) or Aircraft upto one month | Location of supplier of service | a. HSBC USA providing services to L & T India
b. Renting of Yacht at USA for one month by L & T India |
USA |
| Services on board a conveyance eg Ship, Aircraft, Train etc | Location of first schedule point of departure of the conveyance | Hoping Flight from USA to Germany landed in Chennai and then to Germany. | USA |
| Transportation of goods other than mail or courier | Place of destination of goods | Bludart USA provides crude transportation from Dubai ArmancoInc to BPCL India | India |
| Passenger Transportation | Passenger embarks on Conveyance | a. Hoping Flight from USA to Germany landed in Chennai and then to Germany.
b. Hoping Flight from India to Germany landed in USA and then to Germany. |
a. USA
b. India |
| OIDAR Services | Location of recipient of service | Amazon Inc USA provides advertisement services in its sites of USA for Mahindra & Mahindra Vehicles India | India |
| Any other case | Whether location of recipient of service is available
Yes : Such location No : Location of supplier |
||
Time of Supply
The Time of Supply is covered in section 12, 13 & 14 of CGST Act.
The liability to pay GST shall arise at the time of supply as determined under the below mentioned sections.
In this article the author has tried to analyze the act and provides the contents of the act in a tabular module for better understanding and remembrance
Time of Supply of Goods
Section 12 determines the time of supply of goods. Sec 13 determines the time of supply of services
| Description | If goods earlier of | If Services earlier of |
| Sale | a. Earlier of Date of issue of Invoice or the last date by which invoice needs to be issued
b. Receipt of payment by supplier(date of credit in the bank account or date of payment as entered in books of account of supplier) |
|
| Reverse Charge | a. Date of receipt of goods (Extra in case of goods)
b. Date of payment c. 30 days from the date of issue of invoice by supplier If it is not possible to determine as per any of the above then the date of entry in the books of account of recipient of service |
a. Date of payment
b. 60 days from the date of issue of invoice by supplier If it is not possible to determine as per any of the above then the date of entry in the books of account of recipient of service |
| Supply of Voucher | Is supply identifiable at the point of sale of Voucher
Yes → Date of Issue of Voucher No → Date of redemption of voucher |
|
| Any other case | Is periodical record needs to be filed
Yes → Date on which return is to be filed No → Date on which GST is paid |
|
Change in Tax rate in respect to supply
Section 14 contains determines the time of supply where there is a change in the rate of tax.
The time of supply in case of change in tax rate is majorly dependent on three factors.
1. Whether the supply was made before or after the change in tax rate
2. When the payment was received.
3. When the invoice was issued.
| Provision of supply | Payment Received | Invoice Issued | Point of taxation |
| Before the change in rate of tax | After the change | After the change | Earlier of payment received or issue of Invoice. |
| Before the change in rate of tax | After the change | Prior the change | Date of issue of invoice |
| Before the change in rate of tax | Prior the change | After the change | Date of receipt of payment |
| After the change in rate of tax | After the change | Prior the change | Date of receipt of payment |
| After the change in rate of tax | Prior the change | Prior the change | Earlier of payment received or issue of Invoice. |
| After the change in rate of tax | Prior the change | After the change | Date of issue of invoice |
sec 9 say that Architect service by a person in New Delhi to a person in Tamil Nadu to construct a house in USA=POS is Tamil nadu
whereas Sec 10 say Architect service by a person in New Delhi to a person in Tamil Nadu to construct a house in USA= POS is USA
can you please confirm
Sir a very good article. It is also an important article because provision of services and supply will determine chat and sgst .