Determination of Place of Supply under GST

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  • Last Updated on 25 January, 2021

Place of Supply of Goods and Services under GST:

 

1. Summarise the provisions for determination of place of supply of goods in GST other than import and export:

The provisions of section 10 of CGST Act will be applicable in such cases which are tabulated as under:-  

S.No.

Nature of Supply of Goods

Place of Supply

1.

Where the supply involves the movement of goods, whether by the supplier or the recipient or by any other person

Location of the goods at the time at which, the movement of goods terminates for delivery to the recipient

2.

Where the goods are delivered to the recipient, or any person on the direction of the third person by way of transfer of title or otherwise, it shall be deemed that the third person has received the goods

The principal place of business of such person

3.

Where there is no movement of goods either by supplier or recipient

Location of such goods at the time of delivery to the recipient

4.

Where goods are assembled or installed at site

The place where the goods are assembled or installed

5.

Where the goods are supplied on-board a conveyance like a vessel, aircraft, train or motor vehicle

The place where such goods are taken on board the conveyance

6.

Where the place of supply of goods cannot be determined in terms of

sub-sections (2), (3), (4) and (5)

It shall be determined in such manner as may be prescribed

 

2. Summarise the provisions for determination of place of supply of goods in case of Import & Export:

The provisions of section 11 of CGST Act will be applicable in such cases which are tabulated as under:—

S. No.

Nature of Supply of Goods

Place of Supply

1.

Import

location of importer

2.

Export

location outside India

 

3. Tabulate the provisions for determination of place of supply of services in case of domestic supplies:

 
(i) The provisions of section 12 of CGST Act will be applicable in cases of domestic supplies i.e. where the location of supplier of services and the location of the recipient of services is in India. The provisions are given as under:—
 

S.No.

Nature of Service

Place of Supply

1.

Immovable property

related to services, including hotel accommodation

Location at which the immovable property or boat or vessel is located or intended to be located if located outside India: location of the recipient

2.

Restaurant and catering services, personal grooming, fitness, beauty treatment and health service

Location where the services are actually performed

3.

Training and performance appraisal

B2B: location of such Registered person

B2C: location where the services are actually performed

4.

Admission to an event or amusement park

Place where the event is actually held or where the park or the other place is located

5.

Organisation of an event

B2B: location of such Registered person

B2C: location where the event is actually held if the event is held outside

India: location of the recipient

6.

Transportation of goods, including mails

B2B: location of such Registered person

B2C: location at which such goods are handed over for their transportation

7.

Passenger transportation

B2B: location of such Registered person

B2C: 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

 

 

Location of the supplier of services if the location of the recipient of services is not available

10.

Insurance services

B2B: location of such Registered person

B2C: 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., and 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 in records

 

(ii) For the rest of the services other than the 12 services specified above, a default provision has been prescribed as under:

S.No.

Description of Supply

Place of Supply

1.

B2B

Location of such Registered person

2.

B2C

(i)       location of the recipient where the address on record exists, and

(ii)      location of the supplier of services in other cases

To Know Budget Analysis on GST here.

 4. Tabulate the provisions for determining the place of supply in respect of cross border supplies.

 

The provisions of section 13 of CGST Act will be applicable in cases of cross border supplies i.e. where the location of supplier of services or the location of the recipient of services is outside India. 

The provisions are given as under:—

 

i) In respect of the following categories of services, the place of supply is determined with reference to a specific provision. Rest of the services are governed by a default provision.

 

S.No.

Nature of Service

Place of Supply

1.

Services supplied for goods that are required to be made physically available from a remote location by way of electronic means (Not applicable in case of goods that are temporarily imported into India for repairs and exported)

The location where the services are actually performed, The location where the goods are situated

2.

Services supplied to an individual and requiring the physical presence of the receiver

The location where the services are actually performed

3.

Immovable property-related

services, including hotel accommodation

Location at which the immovable property is located

4.

Admission to or organisation of an event

The place where the event is actually held

5.

If the said three services are supplied at more than one locations i.e.,

(i) Goods & individual related

(ii)      Immovable property-related

(iii)    event related

5.1

At more than one location, including a location in the taxable territory

Its place of supply shall be the location in the taxable territory where the greatest proportion of the service is provided

5.2

In more than one State

Its place of supply shall be each such State in proportion to the value of services provided in each State

6.

Banking, financial institutions, NBFC Intermediary services, hiring of vehicles’ services etc.

Location of the supplier of service

7.

Transportation of goods

The place of destination of the goods

8.

Passenger transportation

place where the passenger embarks on the conveyance for a continuous journey

9.

Services on-board a conveyance

The first scheduled point of departure of that conveyance for the journey

10.

Online information and database access or retrieval

services

The location of recipient of service

 
ii) For the rest of the services other than those specified above, the place of supply would be the location of the recipient of service. However if such location is not available in the ordinary course of business the place of supply would be the location of the supplier of service.
 

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