Certificate Course Organised by: ICAI

Presented by: CA Jayesh Gogri

On: 9th June, 2018
At: Mumbai
 Constitutional
aspects

Time of supply Taxability

Provisions
determining
liability
under GST
Valuation Classification

Place of
supply

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 CST IGST

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 GST Components

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 19. Tax wrongfully collected and paid to central Government or
state Government.
(1) A registered person who has paid integrated tax on a supply
considered by him to be an inter-State supply, but which is
subsequently held to be an intra-State supply, shall be granted
refund of the amount of integrated tax so paid in such manner and
subject to such conditions as may be prescribed.
(2) A registered person who has paid central tax and State tax or
Union territory tax, as the case may be, on a transaction considered
by him to be an intra-State supply, but which is subsequently held
to be an inter-State supply, shall not be required to pay any interest
on the amount of integrated tax payable.

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 54. Refund of tax.
(1) Any person claiming refund of any tax and interest, if any,
paid on such tax or any other amount paid by him, may make
an application before the expiry of two years from the
relevant date in such form and manner as may be prescribed:

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 Place of Supply
of goods

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 DOMESTIC SUPPLY OF GOODS- 10

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 Case study

Mr. X of Mahrashtra has agreed to sell goods (Machinery) to

Mr. Y in Maharashtra, however, the delivery of goods will be
required to be done in Goa at Mr. Y’s factory. The price is
inclusive of delivery charges. He could found a supplier Mr. Z
in the state of Goa who delivered goods to . Which tax to be
charged by X?
What if Mr. Y also requests to include installation of
Machinery to be done at Goa Factory in the same price to
which Mr. X agreed?

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 Inter-state Supply

7. (1) Subject to the provisions of section 10, supply of goods,

where the location of
– the supplier and the place of supply are in––
• (a) two different States;
• (b) two different Union territories; or
• (c) a State and a Union territory,
– shall be treated as a supply of goods in the course of inter-State trade
or commerce

Buyer is at Delhi and Supplier is at Maharashtra. Which tax

would be applicable?
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 What is the
location of
supplier of
goods?
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 Location of Supplier of Goods

Unlike “Location of supplier of Service”, location of supplier of

goods has not been defined

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 Why the location of supplier of goods is not defined in the law
?
What should be construed as his location?
– Place of his registration?
– Place of his establishment?
– Place of his agent?

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 What is “place of supply”?

2 (86) CGST Act:

Means the place of supply
As referred to in chapter V
Of the IGST Act

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 Place of supply
10. Place of supply of goods other than supply of goods imported into, or exported from India.
(1) The place of supply of goods, other than supply of goods imported into, or exported from India, shall
be as under,––
(a) where the supply involves movement of goods, whether by the supplier or the recipient or by any other
person, the place of supply of such goods shall be the location of the goods at the time at which the
movement of goods terminates for delivery to the recipient;
(b) where the goods are delivered by the supplier to a recipient or any other person on the direction of a
third person, whether acting as an agent or otherwise, before or during movement of goods, either by way
of transfer of documents of title to the goods or otherwise, it shall be deemed that the said third person
has received the goods and the place of supply of such goods shall be the principal place of business of
such person;
(c) 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;
(d) where the goods are assembled or installed at site, the place of supply shall be the place of such
installation or assembly;
(e) 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.

(2) Where the place of supply of goods cannot be determined, the place of supply shall be determined in
such manner as may be prescribed.

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 Place of supply

10. Place of supply of goods other than supply of goods imported

into, or exported from India.
(1) The place of supply of goods, other than supply of goods
imported into, or exported from India, shall be as under,––
(a) where the supply involves movement of goods, whether by the
supplier or the recipient or by any other person, the place of
supply of such goods shall be the location of the goods at the time
at which the movement of goods terminates for delivery to the
recipient;

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 What is ‘movement of goods’?
What if a person from one State goes to another and buys goods?
What do we mean by – ‘whether by the supplier or the recipient or
by any other person’
Somebody would anyways do movement
Can there be a situation where no movement is involved?
– Hire purchase
– Goods already installed at a place- are sold
– Mere transfer of title
Whether above situations are covered in any other provision?
Which situation is covered?
What do we mean by - for delivery to the recipient

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 Situation other than movement
10 (1) (b) where the goods are delivered by the supplier to a
recipient or any other person
On the direction of a third person,
whether acting as an agent or otherwise,
before or during movement of goods,
either by way of transfer of documents of title to the goods or
otherwise,
It shall be deemed that the said third person has received the
goods
and the place of supply of such goods shall be the principal
place of business of such person;
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 Section 2 (105) of CGST Act
“supplier” in relation to any goods or services or both, shall
mean the person supplying the said goods or services or both
and shall include an agent acting as such on behalf of such
supplier in relation to the goods or services or both supplied;

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 Section 2 (93) of CGST Act
“recipient” of supply of goods or services or both, means—
(a) where a consideration is payable for the supply of goods or
services or both, the person who is liable to pay that
consideration;
(b) where no consideration is payable for the supply of goods,
the person to whom the goods are delivered or made
available, or to whom possession or use of the goods is given
or made available; and
(c) where no consideration is payable for the supply of a
service, the person to whom the service is rendered,

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 Issues

Recipient is a person who pays consideration- if consideration

is payable.2(93).- Why one would follow instruction of a third
person?
What is principal place of business and its relevance?
– Section 2(89) of CGST Act
“principal place of business” means the place of business
specified as the principal place of business in the
certificate of registration

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Section 2 (85) of CGST Act
“place of business” includes––
(a) a place from where the business is ordinarily carried on,
and includes a warehouse, a godown or any other place
where a taxable person stores his goods, supplies or receives
goods or services or both; or
(b) a place where a taxable person maintains his books of
account; or
(c) a place where a taxable person is engaged in business
through an agent, by whatever name called;

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 10(1)(b) Which situations are covered?

Goods cleared from job workers premises

Goods cleared from agents premises
Instructions received from Branch in the same State
Instructions received about billing name and address of a
third person
Instructions without particulars of location
Standing/open orders
Agent ordering for the principal
– In the same state
– In other state
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 Case study

Case study – Principal and job worker

Principal, located in Maharashtra sends inputs for processing
to job worker in Gujarat. After processing goods are to be
directly supplied from the job workers’s premises to customer
in Madhya Pradesh. What will be the place of supply?

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 Case study

CBEC Circular - Circular No. 38/12/2018, dated 26-3-2018

CBEC has clarified that since the supply is being made by the
principal, it is clarified that the time, value and place of supply
would have to be determined in the hands of the principal
irrespective of the location of the job worker’s place of
business/premises.

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 (c) 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
– Goods already installed at a place- are sold
– Mere transfer of title
– Hire purchase
New question- can there be a delivery without movement?

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 (d) where the goods are assembled or installed at site, the place of
supply shall be the place of such installation or assembly;
Goods may involve movement and installation both- which sub-
clause to followed
– More specific
Whether ‘assembled’ to be read with ‘at site’?
– Yes
Examples:Assembly :
Ceiling fan
PC
PFL

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 Assembly installation

As per Schedule II to CGST Act, 2017, works contract as

defined in Section 2(119) of CGST Act is a supply of service
Will assembly of goods or installation at site amount to supply
of goods or supply of services?

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 Giriraj Renewables is an EPC contractor and enters into contract with
various Developers who desire to set up and operate solar photovoltaic
plants for supply of power generated. Entire contract would be
undertaken by the Giriraj Renewables for supply of both goods and
services and setting up of the solar power plant as well as transmission
lines for transmission of the electricity generated. There may be a single
lump sum price for the entire contract for supply of both goods and
services and payment terms may be defined depending on various
milestones.

Whether supply of turnkey Engineering, Procurement and Construction

('EPC') Contract for construction of a solar power plant wherein both
goods and services are supplied can be construed to be a Composite
Supply in terms of Section 2(30) of the Central Goods and Services Tax Act,
2017

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 In Giriraj Renewables Private Limited 2018 (5) TMI 854 -
Authority for Advance Ruling – Maharashtra
It was held that the supply is a works contract as per Section
2(119) of CGST Act, 2017. The super structure being in the
nature of immovable property.
It may be noted that supply of works contract shall be treated
as a supply of service.

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 However, in respect of the same applicant, a different ruling is
issued by Karnataka Authority for Advance Ruling(Advance Ruling
No. KAR ADRG 01/ 2018 dated 21 March 2018.
It has been held that the contract clearly demonstrates that in such
project the owner can procure major equipment involved on their
own also and the contractor may carry out the supply of goods and
services in respect of the remaining portion. Thus, the concept of
natural bundling does not constitute a composite supply. Therefore,
upon examination of the specific nature of supply envisaged under
the draft contract we conclude that envisaged supply does not
amount to composite supply.
Thus supply of goods and services does not amount to works
contract.
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 Skilltech Engineers And Contractors Pvt. Ltd is engaged in
execution of works awarded by KPTCL for construction of
power lines, erection of transmission towers and
transformers. The contract with KPTCL is a single composite
contract, but with three connected agreements for Supply of
Materials, Erection Civil Works respectively. All the three
agreements were awarded to the applicant in response to a
single tender. Whether the contract, executed by them for
KPTCL, is a divisible contract [Supply of goods & Supply of
Services] or an indivisible contract [works contract]?

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 In The Case Of In Re : Skilltech Engineers And Contractors Pvt. Ltd.
2018 (6) TMI 111 - Authority For Advance Rulings, Karnataka it
was held that the composite supply of works contract as defined at
Section 2 clause 119 of CGST Act 2017 is treated as supply of
service in terms of serial no.6, Schedule II of CGST Act'2017 - the
applicant, being the successful bidder, got the single composite
contract, but with three connected agreements for Supply of
Materials, Erection & Civil Works respectively.
All the three agreements were awarded to the applicant in
response to a single tender notification & the general terms and
conditions are commonly applicable to all the three agreements.
The applicant is supplying the material and providing the erection
of towers service and also civil works service. Therefore the
contract entered by the applicant is of the nature of “indivisible'
and squarely falls under the works contract, which is a service.
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 (e) 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 train or a
motor vehicle, the place of supply shall be the location at which
such goods are taken on board.
Air India v. Spicejet
Sold v. served
sold v. served v. supplied
Biscuits
Tea
Biryani
Noodles
Merchandise
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 What if place of supply of goods cannot be
determined by foregoing Sections? 10(2)

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 IMPORT-EXPORT OF GOODS

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 Case study

Mr. A purchased goods from Japan and delivered it to China.

Liable to GST in India?

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 Place of supply of export and import of goods

11. Place of supply of goods imported into, or exported from

India.
The place of supply of goods,––
(a) imported into India shall be the location of the importer;
(b) exported from India shall be the location outside India.

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 Inter-state Supply

7. (2) Supply of goods imported into the territory of India, till

they cross the customs frontiers of India, shall be treated to be
a supply of goods in the course of inter-State trade or
commerce.

Goods sold when they were at Port

What do we mean by crossing customs frontiers

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 Inter-state Supply
When import is said to be completed?
– Kiran Spinning Mills 1999 (113) ELT 753 (SC)
• Import - Additional Duty of Excise (Textiles and Textile Articles) Ordinance
promulgated on 3rd October, 1978 - Countervailing duty - Warehoused goods -
Taxable event - Acrylic Polyester Fibre imported between April, 1977 and
September, 1978, placed in a bonded warehouse, and removed therefrom after
4th October, 1978 - Taxable event occurs when the customs barrier is crossed
and not on the date when goods had landed in India or had entered the
territorial waters - For goods in a warehouse the customs barrier would be
crossed when they are sought to be taken out of the customs and brought to
the mass of goods in the country
– Garden Silk Mills Ltd. 1999 (113) ELT 358 (SC)
• Import when completed - Import of goods will commence when they cross the
territorial waters of India but is completed when it become part of the mass
of the goods within the country - Taxable event is reached when the goods
reach the Customs barrier and Bill of Entry for home consumption is filed

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 Inter-state Supply

Section 7 (3) Subject to the provisions of section 12, supply of

services, where the location of the supplier and the place of
supply are in––
– (a) two different States;
– (b) two different Union territories; or
– (c) a State and a Union territory,
– shall be treated as a supply of services in the course of inter-State
trade or commerce

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 Section 7 (4) Supply of services imported into the territory of
India shall be treated to be a supply of services in the course
of inter-State trade or commerce.

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 Section 7 (5) Supply of goods or services or both,––
(a) when the supplier is located in India and the place of
supply is outside India;
(b) to or by a Special Economic Zone developer or a Special
Economic Zone unit; or
(c) in the taxable territory, not being an intra-State supply
and not covered elsewhere in this section,
shall be treated to be a supply of goods or services or both in
the course of inter-State trade or commerce.

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 Case studies
M/s ABC is in the business of retail sale of sunglasses. M/s
ABC has an outlet at Terminal 3 (International Departure),
Indira Gandhi International Airport, New Delhi. The
sunglasses procured from a supplier are further supplied by
the M/s ABC to the international passengers travelling to
outside India against a valid international boarding pass.
Whether such supply amounts to export?

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 In the case of In Re: M/S. Rod Retail Private Limited 2018 (4) TMI 938 -
Authority For Advance Ruling , New Delhi, it was held that
the goods can be said to be exported only when they cross the territorial
waters of India and the goods cannot be called to be exported, merely on
crossing the Customs Frontiers of India. “export of goods” has been
defined under Section 2(5) of the IGST Act, 2017 as taking goods out of
India to a place outside India. The India is defined under Section 2(56) of
the CGST Act as “India”.
Hence, when goods are exported by Air, the export will be completed only
when goods crosses airspace limits of its territory or territorial waters of
India.
The applicant is not taking goods out of India and hence their supply
cannot be called “export” under Section 2(5) of the IGST Act, 2017 or
“zero rated supply” under Section 2(23) and Section 16(1) of the IGST Act,
2017. Accordingly, the applicant is required to pay GST at the applicable
rates.
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 Case study 2
Mr USA placed an order for product ABC from Mr India. Mr
India further placed an order for product ABC with Mr. China
and asked Mr. China to directly ship the goods to Mr. USA. The
goods never reached the customs frontier of India.

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 In the case of Synthite Industries Ltd., 2018 (4) TMI 583 -
Authority For Advance Ruling – Kerala, it was held that -
“The goods are liable to IGST when they are imported into
India and the IGST is payable at the time of importation of
goods into India - The applicant is not liable to GST on the sale
of goods procured from China and directly supplied to USA as
the goods are not imported into India at any point.”

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 Supplies in territorial waters

Section 9.
Notwithstanding anything contained in this Act,––
(a) where the location of the supplier is in the territorial
waters, the location of such supplier; or
(b) where the place of supply is in the territorial waters,
the place of supply, shall, for the purposes of this Act, be
deemed to be in the coastal State or Union territory where
the nearest point of the appropriate baseline is located.

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 Import/Export Goods (Section 11 of IGST Act)

Place of supply of
goods

Imported into India Exported from India

Location of the
Location outside India
Importer

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 EXPORT OF GOODS

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 Export of goods (Section 2 (5))

Export of goods

With its grammatical and

cognate expressions
Place of
means Supply Location
outside India
Taking out of India

To a place outside India

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 Import of goods [Section 2 (10)]

Import of goods

With its grammatical and

cognate expressions
Place of
means Supply Location
importer
Bringing goods into India

From a place outside

India

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 IMPORT OF GOODS

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 When location of the supplier can be said to be in the
territorial waters?

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 DOMESTIC SUPPLY

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 Domestic supply

where location of supplier and recipient is in India

IGST Act
2(14) Recipient
2(15) Supplier

CGST Act
2(70)
2(71)

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 Location of the supplier
2(15) “location of the supplier of services” means,––
(a) where a supply is made from a place of business for which the
registration has been obtained, the location of such place of
business;
(b) where a supply is made from a place other than the place of
business for which registration has been obtained (a fixed
establishment elsewhere), the location of such fixed establishment;
(c) where a supply is made from more than one establishment,
whether the place of business or fixed establishment, the location
of the establishment most directly concerned with the provision of
the supply; and
(d) in absence of such places, the location of the usual place of
residence of the supplier;

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 Location of the recipient
2 (14) “location of the recipient of services” means,––
(a) where a supply is received at a place of business for which the
registration has been obtained, the location of such place of business;

(b) where a supply is received at a place other than the place of business
for which registration has been obtained (a fixed establishment
elsewhere), the location of such fixed establishment;

(c) where a supply is received at more than one establishment, whether

the place of business or fixed establishment, the location of the
establishment most directly concerned with the receipt of the supply; and

(d) in absence of such places, the location of the usual place of residence of
the recipient;

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 PLACE OF SUPPLY OF SERVICES

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 Place of supply
of services

Specific Rule
General Rule
(Preferred over
(Residual)
general)

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 (2) The place of supply of services, except the services
specified in sub-sections (3) to (14),––
(a) made to a registered person shall be the location of such
person;
(b) made to any person other than a registered person shall
be,––
(i) the location of the recipient where the address on
record exists; and
(ii) the location of the supplier of services in other cases.

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 General Rule

To registered To unregistered
person person

Location of the Address exists Address does

recipient on record not exist

Location of the Location of the

recipient supplier

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 What if the registrations taken in different states by a
recipient in case of :
– Statutory Audit
– Income tax audit
– GST audit
– Stock Audit
– Investigation audit
– Labour law consultancy for staff located at various locations
– Marketing advisory

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 Recipient means

Consideration is payable
– Person liable to pay consideration
No consideration is payable for supply of services
– The person to whom service is rendered
Reference to recipient shall include an agent acting as such on
behalf of recipient

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 Immovable property
12 (3) The place of supply of services
(a) directly in relation to an immovable property, including services provided by
architects, interior decorators, surveyors, engineers and other related experts
or supplies 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;
or
(b) by way of lodging accommodation by a hotel, inn, guest house, home stay,
club or campsite, by whatever name called, and including a house boat or any
other vessel; or
(c) by way of accommodation in any immovable property for organising any
marriage or reception or matters related thereto, official, social, cultural,
religious or business function including services provided in relation to such
function at such property; or
(d) any services ancillary to the services referred to in clauses (a), (b) and (c),
shall be the location at which the immovable property or boat or vessel, as the
case may be, is located or intended to be located:

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 Provided that 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.
Explanation.––Where the immovable property or boat or
vessel is located in more than one State or Union territory, the
supply of services shall be treated as made in each of the
respective States or Union territories, in proportion to the
value for services separately collected or determined in terms
of the contract or agreement entered into in this regard or, in
the absence of such contract or agreement, on such other
basis as may be prescribed.
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 Place of Supply = Location of Immovable Property
Location of the (a)Directly in relation to an immovable property including services provided by
Immovable architects, interior decorators, surveyors, engineers and other related experts or
property or boat estate agents or service provided by way of grant of rights to use immovable property
or vessel is or for carrying out or co-ordination of construction work
located or
intended to be (b) By way of lodging accommodation by a hotel, inn, guest house, home stay, club or
located campsite, by whatever name called, and including a house boat or any other vessel

(c) By way of accommodation in any immovable property for organizing any marriage
or reception or matters related thereto, official, social, cultural, religious or business
function including services provided in relation to such function at such property

(d) any services ancillary to the services referred to in clause (a), (b) and (c)

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 Place of Performance

12 (4) The place of supply of

restaurant and catering services
personal grooming,
fitness,
beauty treatment,
health service
including cosmetic and plastic surgery
shall be the location where the services are actually performed.

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 Training and performance appraisal

12(5) 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.

Training and appraisal both should be together?

Performance appraisal via electronic means?

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 Admission to event

(6) The place of supply of services provided by way of

admission to a cultural, artistic, sporting, scientific,
educational, entertainment event or amusement park or any
other place and services ancillary thereto, shall be the place
where the event is actually held or where the park or such
other place is located.

Open tickets?

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 Event
12 (7) The place of supply of services provided by way of,—
(a) organisation of a cultural, artistic, sporting, scientific, educational or entertainment
event including supply of services in relation to a conference, fair, exhibition,
celebration or similar events; or
(b) services ancillary to organisation of any of the events or services referred to in clause
(a), or assigning of sponsorship to such events,––
(i) to a registered person, shall be the location of such person;
(ii) to a person other than a registered person, shall be the place where the event is
actually held and if the event is held outside India, the place of supply shall be the
location of the recipient.
Explanation.––Where the event is held in more than one State or Union territory and a
consolidated amount is charged for supply of services relating to such event, the place of
supply of such services shall be taken as being in each of the respective States or Union
territories in proportion to the value for services separately collected or determined in
terms of the contract or agreement entered into in this regard or, in the absence of such
contract or agreement, on such other basis as may be prescribed.

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 Transportation of goods

(8) 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.

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 Passenger Transportation
12(9) 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:

Provided that where the right to passage is given for future use and the
point ofembarkation is not known at the time of issue of right to passage,
the place of supply of such service shall be determined in accordance with
the provisions of sub-section (2). (General Rule)

Explanation.––For the purposes of this sub-section, 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.

6/9/2018 CA Jayesh Gogri 74

 Service on board

12 (10) 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.

Serving of a meal-supply of goods or services?

6/9/2018 CA Jayesh Gogri 75

 Telecommunication services 12(11)
Telecommunication
services including data
transfer, broadcasting,
cable and direct to home
television services

Fixed telecommunication
line, leased circuits,
internet leased circuit,
cable or dish antenna

Location of such installation

for receipt of services

6/9/2018 CA Jayesh Gogri 76

 Mobile connection for telecommunication and internet services

Pre paid i.e. voucher or any

Post paid other means (Including DTH) Other cases

Address of recipient
Location of billing on records of
address of recipient on Through selling agent supplier
record of supplier To final subscriber
or re-seller or a
distributor of SIM card
or re-charge voucher
If address of recipient on
If pre-paid service or Location where pre- records of supplier is not
recharge through Address of selling payment is received
agent/re- available – Place of Supply
electronic mode- or vouchers are sold
seller/distributor on = Location of Supplier
Place of Supply =
Location of recipient records of supplier at
the time of supply
on record of supplier

Where the leased circuit is installed in more than one State/UT and a consolidated amount is charged
for supply of services relating to such circuit, place of supply shall be each State/UT in proportion to
the value for services separately collected or determined in terms of contract or on the basis as may
6/9/2018be presribed CA Jayesh Gogri 77
 Banking, stock broking, financial services 12(12)

Location
Location
Place of of the If not
of the
supply recipient available
supplier
on record

6/9/2018 CA Jayesh Gogri 78

 Insurance services Sec. 12(13) of IGST

Supply of Insurance
Services

Registered Person Unregistered Person

Location of recipient
Location of such
on record of supplier
registered person
of service

6/9/2018 CA Jayesh Gogri 79

 Advertisement services Sec. 12(14) of IGST

Advertisement Services to
Central/State Government,
Statutory body, Local
authority being recipient

Respective proportion in
If no contract – On the
each of the State as per the
basis as may be prescribed
contract

6/9/2018 CA Jayesh Gogri 80

 PLACE OF SUPPLY OF SERVICES-
INTERNATIONAL SCENARIO
6/9/2018 CA Jayesh Gogri 81
 Import of services

Service tax
under RCM
including IGST
import of
services

6/9/2018 CA Jayesh Gogri 82

 Export of services (Section 2 (6))

Supplier and
recipient are not
merely
establishment of a
distinct person
Place of supply of Establishment of a
Supplier is located in Recipient is located Payment received in
service is outside person in India and
India outside India convertible FE
India his other
establishment
outside India to be
treated as
establishments of
distinct persons

6/9/2018 CA Jayesh Gogri 83

 Recent verdict of Delhi High Court
Indian Association of Tour operators

6/9/2018 CA Jayesh Gogri 84

 General/residual rule

Nature of service In general context

Rule The location of service receiver
Example ‘A’ receives service in Mumbai from ‘B’ of New York. The
place of provision will be Mumbai

6/9/2018 CA Jayesh Gogri 85

 Performance based

Nature of services • Services in respect of goods that are required

to be made physically available
• Services where physical presence of service
receiver required
Rule Performance based
Example Maintenance, Erectioning etc
When these services are provided from a remote location by way of electronic means, what will be the
place of provision?
Location where goods are situated at the time of supply of services
Not applicable for goods temporarily imported in India for repairs, later exported without being put to
use except repairs

What if goods are imported for repairs- import duty payable?

6/9/2018 CA Jayesh Gogri 86

 Case study 1 - ABC India exported goods DEF Plc. However,
DEF Plc sent back the goods for repairs to India. The goods
were temporarily imported in India for repairs and re-
exported after repairs without being put to any other use.
What would be the place of supply in respect of repairs of
goods?
Case study 2 – Magic Software Corp provides services of
development of software to its client in Germany. Servers are
located in Germany. Services are provided by electronic
means from India. What id the place of supply of such
service?
6/9/2018 CA Jayesh Gogri 87
 Answer – Case study 1 - Location of recipient of service
2nd proviso to Section 13(3)(a) specifically states that Section
13(3)(a) will not be applicable in respect services provided in
respect of goods temporarily imported in India for repairs.
Thus, place of supply to be determined as per Section 13(2),
i.e., location of recipient of services. In this case, place of
supply will be outside India.
Answer Case Study 2- Location where goods are situated
1st proviso to Section 13(3)(a) specifically states that place of
supply shall be location where goods are situated

6/9/2018 CA Jayesh Gogri 88

 Property based

Nature of service Services directly in relation to

immovable property, including service
supplied by experts, estate agents,
supply of accommodation by a hotel,
inn, guest house, club or campsite, by
whatever name called, grant of right to
use immovable property, services for
carrying out or co-ordination of
construction work, including that of
architects or interior decorators
Rule Location of the property
Example Architect, hotel accommodation,
Construction etc

6/9/2018 CA Jayesh Gogri 89

 …Immovable Property related services

Location of property
outside India

Location of supplier Location of supplier

and recipient in or recipient outside
India India

Place of Supply= Place of supply =

Location of Location of
Recipient immovable property

6/9/2018 CA Jayesh Gogri 90

 Renting

INDIA

Place of supply of services where the location of the supplier or

the location of the recipient is outside India

Location of Immovable Property

6/9/2018 CA Jayesh Gogri 91

 Renting

CHINA
Place of supply of services where the location of the supplier or
the location of the recipient is outside India

Location of Immovable Property

6/9/2018 CA Jayesh Gogri 92

 Renting

SRK House at Dubai

Location of supplier and location of recipient in India

Both located in India and property outside India, Location of

Service Recipient (Taxable under reverse charge)

6/9/2018 CA Jayesh Gogri 93

 Event based

Nature of service Services in relation to admission to or

organisation of events and ancillary
services
Rule Place where it is held

Example Exhibition, conference etc.

6/9/2018 CA Jayesh Gogri 94

 Services supplied at more than 1 location
Nature of service Multiple location services
Rule More than 1 Countries: Location in the
taxable territory
More than 1 State/UT (for import or
export of services only):
Proportionate basis as per value
separately collected or contract
If no contract: On the basis as may be
prescribed
Example ‘A’ has provided management consultancy
service to the extent of 20% in Delhi, 30%
in Mumbai and 50% in Bangkok. The Place
of Provision is Mumbai since greatest
proportion of service is provided in the
Mumbai i.e. taxable territory
6/9/2018 CA Jayesh Gogri 95
 Specified Category

Nature of service Banking services to account holders,

intermediary, hiring of transport
including yachts, other than aircrafts and
vessels, upto 1 month
Rule Place of supplier of service

Example ‘A’ is account holder at Guwahati and

Banking services located at USA, the place
of provision will be USA

• Intermediary means a broker, an agent or any other person, by whatever name

called, who arranges or facilitates the supply of goods/services, between two or
more persons, but does not include a person who supplies the main
goods/service or securities on his account.

6/9/2018 CA Jayesh Gogri 96

 Goods Transportation

Nature of service Goods transportation (not covering

mail or courier)

Rule Place of destination of goods

Example •If ‘A’ of Mumbai transports goods to

‘B’ at New York, the place of provision
will be New York

6/9/2018 CA Jayesh Gogri 97

 Transportation of passengers

Nature of service Passenger transportation services

Rule Place where the passenger embarks for

continuous journey
Example ‘A’ from Mumbai travels to UK by airline.
The place of provision is Mumbai

6/9/2018 CA Jayesh Gogri 98

 Services on board

Nature of service Services on board a conveyance including

services intended to be wholly or
substantially consumed while on board
Rule Place which is the first scheduled point of
departure of that conveyance for the
journey
Example ‘A’ from Mumbai travels to Africa by a
flight and during the journey, he buys
Charger. The place of provision is Mumbai

6/9/2018 CA Jayesh Gogri 99

 Online information and database access or
retrieval services
Provider or Recipient outside India
Place of Supply = Location of recipient

Location of Recipient in taxable territory if any two of below

mentioned non-contradictory conditions are in taxable territory:
• the location of address presented by the recipient of service through internet
• Issue of Credit/debit/store-value/charge card/smart card/other card used as mode of
payment
• the billing address of recipient of service
• IP address of device used
• Bank account
• Country code of SIM card
• Fixed land line

6/9/2018 CA Jayesh Gogri 100

 Online information & database access or retrieval services

Supply of online information and database access or retrieval

services

by any person located in a non-taxable territory and

received by non-taxable online recipient

the supplier of service located in a non-taxable territory shall

be the person liable for paying IGST

Take single registration in simplified registration scheme to

discharge IGST

Service tax Circular No. 202/12/2016-S.T., dated 9-11-2016 in

respect of OIDAR service is squarely applicable in GST regime

6/9/2018 CA Jayesh Gogri 101

 Case study
Godaddy India proposed to provide support services in an
integrated manner to assist Godaddy USA incorporated in
USA to develop its brand in India, carry on its operations
efficiently and serve customers in India. Godaddy India
proposed to charge fees of cost plus mark-up. The only
service to be performed by Godaddy India to Godaddy USA
would be on a principal-to principal and arm’s length basis.

Are the services provided by Godaddy India intermediary

services?

6/9/2018 CA Jayesh Gogri 102

 Advance Ruling of Service tax era - Go daddy India Web
Services Pvt. Ltd. 2016 (46) STR 806 (AAR).
It was held that that various services proposed to be provided
by GoDaddy India to GoDaddy US are bundle of services and
shall be classified as business support service and not
intermediary service. Consequently, advance ruling authority
ruled that such services fall under Rule 3 of POPS and place of
provision of such services shall be the location of the recipient
of service. Therefore, the services were held to be export in
terms of Rule 6A of the Service Tax Rules, 1994.

6/9/2018 CA Jayesh Gogri 103

 Place of effective use and enjoyment of services

CG to notify
services or
To prevent double
circumstances in
taxation or non-
which the place of
taxation or for
supply shall be the
uniform
place of effective
applicability of
use and
rules
enjoyment of a
service

6/9/2018 CA Jayesh Gogri 104

Nature of service Supplier and recipient located in India Supplier or recipient
located outside India
General Rule (a) made to a registered person shall be the location of such person; location of the recipient of
(b) made to any person other than a registered person shall be,–– services
(i) the location of the recipient where the address on record exists;
and
(ii) the location of the supplier of services in other cases.
directly in relation to an
immovable property, shall be the location at which the immovable property or boat or
vessel, as the case may be, shall be the location at
by way of lodging
is located or intended to be located. which the immovable
accommodation
property, is located or
by way of if the location of the immovable property or boat or vessel is located intended to be located
accommodation in any or
immovable property intended to be located outside India, the place of supply shall be the
location of the recipient
Any ancillary services

6/9/2018 CA Jayesh Gogri 105

Nature of service
provided by way of admission to a
cultural, artistic, sporting, scientific,
educational, entertainment event or
amusement park or any other place
and services ancillary
Restaurant, catering services,
personal grooming, fitness, beauty
treatment, health service including
cosmetic and plastic surgery
Training and performance appraisal
6/9/2018
Supplier and recipient located in Supplier or recipient located
India outside India
place where the event is actually shall be the place where the
held event is actually held
or where the park or such other
place is located
location where the services are
actually performed.
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.
CA Jayesh Gogri 106
Nature of service
(a) organisation of a cultural, artistic,
sporting, scientific, educational or
entertainment event including
supply of services in relation to a
conference, fair, exhibition,
celebration or similar events; or
(b) services ancillary to organisation
of any of the events or services
referred to
in clause (a), or assigning of
sponsorship to such events,––
by way of transportation of goods,
including by mail or courier
6/9/2018
Supplier and recipient located in India Supplier or recipient located
(Section 12) outside India (Section 13)
(i) to a registered person, shall be the
location of such person;
(ii) to a person other than a registered
person, shall be the place where
the event is actually held and if the
event is held outside India, the place of
supply shall be the location of the
recipient.
(a) a registered person, shall be the transportation of goods,
location of such person; other than by way of
(b) a person other than a registered mail or courier, shall be the
person, shall be the location at which place of destination of such
such goods are handed over for their goods.
transportation.
CA Jayesh Gogri 107
Nature of service Supplier and recipient located in India Supplier or recipient located
outside India
Passenger (a) a registered person, location of such person; The place where the
transportation (b) other than a registered person, place where the passenger embarks on the
service passenger embarks on the conveyance for a conveyance for a continuous
continuous journey: journey
Provided that where the right to passage is given for
future use and the point of embarkation is not
known at the time of issue of right to passage, the
place of supply
of such service shall be determined in accordance
with the provisions of sub-section (2).
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
services on board a location of the first scheduled point of the first scheduled point of
conveyance, departure of that conveyance for the journey departure of that
including a vessel, conveyance for the journey.
an aircraft, a train or
a motor vehicle
6/9/2018 CA Jayesh Gogri 108
Nature of service Supplier and recipient located in India Supplier or recipient located
outside India
banking and other location of the recipient of services on the
financial services, records of the supplier of service
including stock broking
services to any person
insurance service (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.
online information and the location of the recipient of
database access or services
retrieval services

6/9/2018 CA Jayesh Gogri 109

Nature of service Supplier and recipient Supplier or recipient located
located in India outside India
(a) services supplied by a banking location of the supplier
company, or a financial institution, or a of services
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.

6/9/2018 CA Jayesh Gogri 110

 Advance Ruling

Section 97(2) of CGST Act, 2017 states the issues in respect of

which advance ruling may be sought.
There is no mention of ‘Place of supply’ in the list of issues in
respect of which advance ruling may be sought
Further, even as per Section 20 of IGST Act, 2017,provisions of
CGST Act relating to inter alia advance ruling shall, mutatis
mutandis, apply, so far as may be, in relation to integrated tax
as they apply in relation to central tax as if they are enacted
under IGST Act

6/9/2018 CA Jayesh Gogri 111

 Advance Ruling

What if advance ruling is sought in respect of matters not

covered under Section 97 of CGST Act?
In the case of Jason James Clemens 2005 (181) E.L.T. 16
(A.A.R.), advance ruling was sought in respect of it was held
that the questions raised by the applicant are not covered
under sub-section (2) of section 96C of the Finance Act, 1994.
Thus, the authorities may not give a ruling in respect of
matters not specified in respect of which advance ruling may
be sought,

6/9/2018 CA Jayesh Gogri 112

 Disclaimer
Intention of the presentation is only for providing easy understanding of
the subject
The Presentation is based on GST Law and Draft Rules as it stands on the
date of the circulation and may be required to be revisited in view of
change in law at a later date
In view of the rapid changes occurring in GST Law as well as
the possibility of human error, this presentation may contain technical
inaccuracies, typographical or other errors
This document is meant for internal circulation for introduction/basic
understanding purposes only. A detailed consultation with us is required
before taking any tax/business decision based on this document.
GSC Intime Services Pvt. Ltd. (‘GSC’), its employees or directors are in no
way responsible for any loss arising due to reliance placed on this
document
6/9/2018 CA Jayesh Gogri 113
6/9/2018 CA Jayesh Gogri 114
 Disclaimer

All rights reserved. All contents created are owned by GSC or

its affiliates for ease of understanding by the participants only.
Unauthorized use is strictly prohibited.
No part of this publication may be reproduced, distributed, or
transmitted in any form or by any means, including
photocopying, recording, or other electronic or mechanical
methods, without the prior written permission of GSC.
For permission requests, write to GSC, addressed at the Email
address provided at the last slide

Copyright © 2018 by GSC

6/9/2018 CA Jayesh Gogri 115
6/9/2018 CA Jayesh Gogri 116
 Our Offices:
West Region: www.gscintime.com
2/19 Nityanand Nagar, Sahar Road,
Andheri (East), Mumbai-400 069.

North Region:
A-36, First Floor, Ring Road, +91 22 2683 6519
Adjacent to Raja Garden Flyover, +91 98672 58133
Rajouri Garden, New Delhi - 110 027

East Region:
406A - 406B, 4th Floor, Todi Chamber, preranashah@gscintime.com
2, Lal Bazar Street, Kolkata - 700 001.
info@gscintime.com
South Region:
64, Thirumalai Pillai Road,
T. Nagar, Chennai – 600 017.
6/9/2018 CA Jayesh Gogri 117