GST is a consumption based tax. So the tax should be received by the government of the state or union territory where goods/services are consumed. So there should be proper determination of the place where supply took place. Also there is a requirement to determine whether sales is within state (intra state) or to outside state (inter state) so that proper taxes can be charged. GST act and rules specifies the place where goods/services should be considered as supplied.
Place of Supply of Goods
Where the supply involves movement of goods, the place of supply will be the location of the goods at the time at which the movement of goods terminates for delivery to the recipient.
Where the supply does not involve movement of goods, whether by the supplier or the recipient, the place of supply shall be the location of such goods at the time of the delivery to the recipient.
Where the goods are assembled or installed at site, the place of supply shall be the place of such installation or assembly.
Where the goods are supplied on board a conveyance, including a vessel, an aircraft, a train or a motor vehicle, the place of supply shall be the location at which such goods are taken on board.
The place of supply of goods imported into India shall be the location of the importer.
The place of supply of goods exported from India shall be the location outside India.
Place of Supply of Services
Place of supply of services
- made to a registered person shall be the location of such registered person.
- made to any person other than a registered person shall be
– the location of the recipient where the address on record exists.
– the location of the supplier of services in other cases.
Place of Supply of Services in Specific Cases
Immovable Property – Location of Immovable Property
Services directly in relation to an immovable property, including services provided by architects, interior decorators, surveyors, engineers and other related experts or estate agents, any service provided by way of grant of rights to use immovable property or for carrying out or co-ordination of construction work.
Hotel, Guest House, Club, Houseboat – Location of such property
Service of accommodation in such immovable property including organising of marriage or reception or any official, social, cultural, religious function. If the location of the immovable property or boat or vessel is located or intended to be located outside India, the place of supply shall be the location of the recipient.
Restaurant and catering services, personal grooming, fitness, beauty treatment, health service including cosmetic and plastic surgery – Location where the services are actually performed.
The place of supply of services in relation to training and performance appraisal to
(a) a registered person, shall be the location of such person;
(b) a person other than a registered person, shall be the location where the
services are actually performed.
Admission to a cultural, artistic, sporting, scientific, educational, entertainment event or amusement park or any other place – Place where the event is actually held or where the park or such other place is located.
The place of supply of services by way of transportation of goods, including by mail or courier to
(a) a registered person, shall be the location of such person;
(b) a person other than a registered person, shall be the location at which such goods are handed over for their transportation.
The place of supply of passenger transportation service to,
(a) a registered person, shall be the location of such person;
(b) a person other than a registered person, shall be the place where the passenger embarks on the conveyance for a continuous journey
The return journey shall be treated as a separate journey, even if the right to passage for onward and return journey is issued at the same time.
The place of supply of services on board a conveyance, including a vessel, an aircraft, a train or a motor vehicle, shall be the location of the first scheduled point of departure of that conveyance for the journey.
The place of supply of telecommunication services including data transfer, broadcasting, cable and direct to home television services to any person shall,—
(a) in case of services by way of fixed telecommunication line, leased circuits, internet leased circuit, cable or dish antenna, be the location where the telecommunication line, leased circuit or cable connection or dish antenna is installed for receipt of services.
(b) in case of mobile connection for telecommunication and internet services provided on post-paid basis, be the location of billing address of the recipient of services on the record of the supplier of services.
(c) in cases where mobile connection for telecommunication, internet service and direct to home television services are provided on pre-payment basis through a voucher or any other means,
(i) through a selling agent or a re-seller or a distributor of subscriber identity module card or re-charge voucher, be the address of the selling agent or re-seller or distributor as per the record of the supplier at the time of
supply; or
(ii) by any person to the final subscriber, be the location where such prepayment is received or such vouchers are sold;
(d) in other cases, be the address of the recipient as per the records of the supplier of services and where such address is not available, the place of supply shall be location of the supplier of services.
Provided that where the address of the recipient as per the records of the supplier of services is not available, the place of supply shall be location of the supplier of services.
Provided further that if such pre-paid service is availed or the recharge is made through internet banking or other electronic mode of payment, the location of the recipient of services on the record of the supplier of services shall be the place of supply of such services.
The place of supply of banking and other financial services, including stock broking services to any person shall be the location of the recipient of services on the records of the supplier of services. Provided that if the location of recipient of services is not on the records of the supplier, the place of supply shall be the location of the supplier of services.
The place of supply of insurance services shall
(a) to a registered person, be the location of such person.
(b) to a person other than a registered person, be the location of the recipient of services on the records of the supplier of services.
Place of supply of services where location of supplier or location of recipient is outside India
The place of supply of services shall be the location of the recipient of services. Where the location of the recipient of services is not available in the ordinary course of business, the place of supply shall be the location of the supplier of services.
Place of supply of the following services shall be the location of the supplier of services-
(a) services supplied by a banking company, or a financial institution, or a non-banking financial company, to account holders.
(b) intermediary services.
(c) services consisting of hiring of means of transport, including yachts but excluding aircrafts and vessels, up to a period of one month.
Place of supply of online information and database access or retrieval services shall be the location of the recipient of services.Person receiving such services shall be deemed to be located in the taxable territory, if any two of the following non-contradictory conditions are satisfied
(a) the location of address presented by the recipient of services through internet is in the taxable territory;
(b) the credit card or debit card or store value card or charge card or smart card or any other card by which the recipient of services settles payment has been issued in the taxable territory.
(c) the billing address of the recipient of services is in the taxable territory.
(d) the internet protocol address of the device used by the recipient of services is in the taxable territory.
(e) the bank of the recipient of services in which the account used for payment is maintained is in the taxable territory.
(f) the country code of the subscriber identity module card used by the recipient of services is of taxable territory.
(g) the location of the fixed land line through which the service is received by the recipient is in the taxable territory.
Source: IGST Act
Also Read:
Valuation of Goods/Services under GST
Time of Taxation under GST
