Know all about Place of Supply under GST for Goods and Services

Introduction

Knowing the place of supply is extremely important under GST. It is on the basis of ‘Place of Supply’ whether we can determine if GST is chargeable or not and whether IGST or CGST and SGST/UTGST is applicable. Place of Supply is covered under the IGST Act. Let us learn the same in detail.

Section 10 – Place of Supply pertaining to goods (other than imports & exports)

Situation	Place of Supply
Supply involves movement of goods directly from supplier to recipient	Location where the goods are delivered
Where goods are supplied at the direction of a 3rd person	Location of such 3rd person
When there is no movement of goods – Cases of immediate delivery	Location where the goods are made available to the recipient
When goods are assembled/installed at site	Location where the goods are assembled/installed
When goods are supplied on board of a conveyance(including vessel, aircraft, train, motor vehicle)	Location where the goods are boarded

Let us refer to the examples below to understand the same:-

1. Whether supply involves movement of goods

Mr A is a seller of mobile phones in Mumbai. He wants to supply the goods to Delhi. The Place of supply is Delhi (location where the movement of goods terminates)

2. When goods are supplied at the direction of the 3^rd person

Supplier from Mumbai is delivering to Mr C (Jaipur) on the direction of Mr B who is in Delhi. Place of supply is Delhi (location of Mr B)

3. No movement of goods (cases of immediate delivery)

Mr A owns a mobile shop in Bangalore. He sells mobile phones over the counter at his shop only. Place of Supply will be the location where the goods are made available to the customer’s i.e. Bangalore (place where his shop is located)

4. When goods are assembled/installed at site

Mr A is a manufacturer in Jaipur. He wants to manufacture a plant in Jaipur for which he has purchased parts from Mumbai, Delhi and Jodhpur. Place of supply will be Jaipur (where the plant is being assembled)

5. When goods are supplied on board of a conveyance

A flight is flying from Mumbai to Delhi via Goa.  Food is supplied/boarded on the aircraft at Goa. Place of supply will be Goa (Location where the goods are boarded

Section 11 – Place of Supply pertaining to goods imported into India or exported from India

1.In case of Import

Place of supply shall be location of importer

Person from Kanpur is importing goods via a vessel. The vessel has reached Mumbai. Place of supply is Kanpur

2. In case of Export – Location outside India

Place of Supply of Services is covered in 2 sections:-

1. Section 12 – Place of Supply pertaining to services, where location of supplier and recipient is in India
2. Section 13 – Place of Supply pertaining to services, where either the location of supplier and recipient is outside India

Let us refer to the Place of Supply for specific cases under Section 12 and Section 13

Situation	Place Of Supply – Section 12	Place Of Supply -Section 13
Services pertaining to immovable property (providing property on rent, services provided by interior decorators, surveyors, engineers)	Place where the immovable property is situated If property is outside India, then location of recipient	Location where the immovable property is situated
Restaurant & catering services, personal grooming & fitness services, beauty treatment, health services Performance based services	Location where the service is actually being performed	Location where the service is actually being performed
Training and Performance Appraisal services	If recipient is registered person, then location of such registered person If recipient is unregistered person, then location where service is being performed	Not explicitly mentioned
Admission to an event or amusement park	Place where the event is actually held or where the park is located	Where the event is actually being held
Organisation of an event	If recipient is registered person, location of registered person If recipient is unregistered person, location where event is being conducted If recipient is unregistered person & event is outside India, location of recipient	Where the event is actually being held
Transportation of goods including mail	If recipient is registered person, location of registered person If recipient is unregistered person, place where goods are being handed over	Destination of such goods
Passenger transportation	If recipient is registered person, location of registered person If recipient is unregistered person, place from where the passenger embarks for the journey	Place from where the passenger embarks for the journey
Service on board a conveyance	First scheduled departure point	First scheduled departure point
Banking and other financial services	Where records are available with the bank, location of recipient Where records are not available with the bank, location of supplier	Location of Supplier
Insurance Services	If recipient is registered person, location of registered person If recipient is unregistered person, address of the recipient available with the Insurance Co	Not explicitly mentioned
Telecommunication service which involves a fixed line	Location where the equipment is fixed	Not explicitly mentioned
Telecommunication Postpaid Services	Billing address of the recipient	Not explicitly mentioned
Telecommunication Prepaid Services	Place of sale of voucher (location of agent)	Not explicitly mentioned
Supply w.r.t services where goods are to be made physically available	Not explicitly mentioned	Location where service is actually being performed If such services are being provided from remote location through e-media, location where goods are situated
Online information and database access or retrieval services	Not explicitly mentioned	Location of the recipient

Let us refer to some example of Section 12 to understand it better:

1.Services pertaining to immovable property

Mr A is provides interior decoration services to Mr B (from Delhi) for his properties which are located in London and Mumbai.

Property Located in	Place of Supply
Mumbai	Mumbai (location of property)
London	Delhi (location of recipient)

2. Performance based services

Mr A from Delhi provides beauty treatment services to Mr C in Kolkata. Place of supply will be Kolkata (location where such services are being performed)

3. Training and Performance Appraisal

Mr A provides GST training to its clients in Mumbai

Recipient	Place of Supply
XYZ Pvt Ltd (registered person located in Delhi)	Delhi (location of registered person)
Mr B (unregistered person located in Goa)	Mumbai (location where such service is provided)

4. Admission to an event or amusement park

Mr XYZ provides entry tickets for a music festival which is to be hold in Goa. Place of supply of such service will be Goa.

5. Organisation of event

You are an event manager and have organised a couple of events. Place of supply of these events will be as follows:-

Event Location	Recipient	Place of Supply
Mumbai	PQR Pvt Ltd (registered person located in Jaipur)	Jaipur (location of registered person)
Delhi	Mr X (unregistered person located in Bangalore)	Delhi (location of event)
Paris	Mr Y (unregistered person located in Bangalore)	Bangalore (location of recipient)

6. Transportation of goods including mail

XYZ Co provides the transportation services of goods from Jaipur to Delhi

Recipient	Place of Supply
PQR Pvt Ltd (registered person located in Mumbai)	Mumbai (location of registered person)
Mr X (unregistered person from Bangalore)	Jaipur (location of where the goods are being handed over)

7. Passenger transportation

XYZ Co provides the transportation services of goods from Mumbai to Pune

Recipient	Place of Supply
PQR Pvt Ltd (registered person located in Delhi)	Delhi (location of registered person)
Mr X (unregistered person from Bangalore)	Mumbai (location of where the passenger embarks the journey)

8. Service on board a conveyance

ABC Caterers provides dinner services on the following flights:-

Flight Schedule	Place of Supply (First scheduled departure point)
Mumbai to London	Mumbai
Delhi to Mumbai via Goa	Delhi
London to Delhi	London

9. Banking and other financial services

i. ICICI Bank provides fund transfer services to its accountholder, Mr B who is from Delhi. The records of Mr B will be available with ICICI bank. Place of supply in this case will be the location of the recipient (Delhi)

ii.Mr X (from Delhi) uses an ICICI ATM in Shimla, but account is with SBI.  In this situation the details of Mr X will not be present with ICICI Bank. Place of supply will be Shimla (location of supplier – place where the ATM is located)

10. Insurance Services

ABC Insurance Co provides health insurance services.

Recipient	Place of Supply
PQR Pvt Ltd (registered person located in Delhi)	Delhi (location of registered person)
Mr X (unregistered person from Bangalore)	Bangalore (address of the recipient available with the insurance co)

11. Telecommunication services (DTH services, mobile phone recharge)

Mr A is from Kolkata. He gets a job at Mumbai and gets a landline connection done at Mumbai. So, the place of supply in this case is Mumbai. However, the place of supply would be Kolkata, if Mr A would have taken a postpaid connection and provided the Billing Address of Kolkata.

Even by considering the above provisions, place of supply cannot be deduced, the law provides for a default provision in such cases which should be used while finding place of Supply

Section 12 – Place of Supply when

1. Service provided to registered person is location of such registered person
2. Service provided to unregistered person & location of recipient is available is location of recipient
3. Service provided to unregistered person & location of recipient is unavailable is location of supplier

Section 13 – Place of Supply is Location of recipient. If the same is not available then location of supplier is to be considered.

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