What is the Need for the Place of Supply of Goods and Services under GST?
- Blog|GST & Customs|
- 786 Views
- 3 Min Read
- By Taxmann
- Last Updated on 4 January, 2021
Whether place of supply principles always relevant for identifying the State where registration is to be obtained?
No, as in most of the cases, the place of supply is derived from the location of the recipient of supply. In case the place of supply would have been same as place where registration is to be obtained then every supply would have been intra-State and there would have been no need of IGST.
What is the significance of “Location” of a Service Provider or Receiver for determining taxing jurisdiction?
The location of supplier of goods or services is important as it is one of the parameter for determining whether the supply is inter-State or intra-State and accordingly which type of tax is to be paid. Further the place of supply which is the other determinant of nature of supply is usually the location of the recipient of supply specifically in respect of services. Further the jurisdiction of the field formation, which is relevant for compliance with registration formalities, filing of returns, refund claims etc. by the person liable to pay tax (provider or receiver as the case may be), will be the “location” as determined in terms of these rules.
How will the “location of supplier or recipient of goods” be determined?
The location of supplier of goods has not been defined under GST law, the reason thereof may be that the goods being tangible in nature is easy to identify the location of supplier and recipient. Generally, the location of supplier would be the place from where the goods are supplied and location of recipient being place where the goods are received and consumed.
How will such “location of supplier or recipient of services” be determined?
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