Dr.

SHAKUNTALA MISRA NATIONAL REHABILITATION UNIVERSITY

Lucknow

Faculty of Law

ASSIGNMENT ON

“PLACE OF SUPPLY”

For

LAW OF TAXATION-II

Submitted by

ANVESHA CHATURVEDI

B.Com. LL.B.(Hons.)

Academic Session: 2022-2023

Under the Guidance of

MR. SAGIR AHMAD RAZA

Faculty of Law
Dr. Shakuntala Misra National Rehabilitation University
 ACKNOWLEDGEMENT

Although this project has been prepared by me, but this would not have been
possible without the efforts of some people because of which I have been able
to complete this project of mine. I would like to thank the All mighty because
this fact cannot be contradicted that without his blessings and support anything
is possible under the sky...
 TABLE OF CONTENTS

 Introduction
 Determination of nature of supply
 Place of supply of goods or services or both
 Place of supply of services where location of recipient is in India
 Place of supply of services where location of recipient is outside India
 Bibliography
INTRODUCTION:

The basic principle of GST is that it should effectively consumption-based tax of such
supplies at the destination thereof or as the case may at the point of consumption. So, place of
supply provision determines the place i.e., taxable jurisdiction where the tax should reach.
The place of supplies determines whether a transaction is intra-state or inter-state. In other
words, the place of supply of goods is required to determine whether a supply is subject to
SGST + CGST in given state or else would attract IGST if it is an inter-state supply.

DETERMINATION OF NATURE OF SUPPLY:

A. Inter-State supply of goods/service (Sec. 7 of IGST Act, 2017

Where the location of the supplier and the place of supply are in two different states
or two different Union territories shall be treated as a supply of goods/service in the
course of inter-state trade or commerce.
B. Intra State supply of goods/service (Sec.8 of IGST Act, 2017)
SUPPLY OF GOODS: Where the location of the supplier and the place of supply of
goods are in the same state or same UT shall be treated as intra state supply:
The following supply of goods shall not be treated as intra-state supply:-
i. Supply of goods to a Special Economic Zone developer or a Special Economic
Zone unit;
ii. Supply of goods by a Special Economic Zone developer or a Special
Economic Zone unit;
iii. Goods imported in to the territory of India; or
iv. Supplies made to a tourist referred to in section 15 of IGST Act, 2017.

SUPPLY OF SERVICES: Where the location of the supplier and the place of
supply of goods are in the same state or same UT shall be treated as intra state supply.
However, the intra- state supply of service shall not include supply of services to or by a
Special Economic Zone developer or Special Economic Zone unit.

Example:

Location of Supplier Place of Supply Nature of Supply

Haryana Haryana Intra (CGST + SGST)
Chandigarh Haryana Inter (IGST)
Chandigarh Daman and Diu Inter (IGST)
PLACE OF SUPPLY OF GOODS OR SERVICES OR BOTH

A. Place of supply of goods other than supply of goods imported in to, or exported
from India. (Sec. 10 of IGST Act, 2017)
1. SUPPLY INVOLVES MOVEMENT OF GOODS
Where the supply involves movement of goods, 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.

Example:

Particulars Location of Termination of Place of Supply Tax Payable

Supplier movement for
delivery
Movement of Haryana Punjab Punjab IGST
goods by the
supplier
Movement of Rajasthan Rajasthan Rajasthan CGST/SGST
goods by the
recipient(goods
collected by the
recipient)

2. Supply involving movement of goods delivered to recipient on the instruction of

third person- Bill to Ship to Sale

Where goods are delivered by the supplier to the recipient at the instruction of a third
person, the place of supply is the principal place of business of such third person and not
the actual recipient.

3. Supply does not involve movement of goods

Where the supply does not involve movement of goods, the place of supply shall be the
location of such goods at the time of the delivery to the recipient.

4. Goods Assembled or Installed at Site

 Where the goods are assembled or installed at site, the place of supply shall be the place
of such installation or assembly.

5. Goods Supplied on Board

Where the goods are supplied on board a conveyance, including a vessel, an air-craft, a
train or a motor vehicle, the place of supply shall be the location at which such goods are
taken on board.

6. Residual

Where the place of supply of goods can not be determined, the place of supply shall be
determined in such manner as may be prescribed.

B. Place of supply of goods imported in to, exported from India. (Sec. 11, IGST Act,
2017)
i. Imported Goods: In case of import of goods into India, the place of supply of
goods shall be the location of the importer.
ii. Exported Goods: In case of exported goods from India, the place of supply of
goods shall be the location outside India.

PLACE OF SUPPLY OF SERVICES WHERE LOCATION OF SUPPLIER AND

RECIPIENT IS IN INDIA (Sec. 12, IGST Act, 2017)

The provisions of this section shall apply to determine the place of supply of services where
the location of supplier of services and the location of the recipient of services is in India.

1) General/Default Rule [Sec. 12(2)]

The rule is applicable only if the supply of service does not fall in any of the specific
cases provided under section 12(3) to section 12(14).

a) The place of supply of services made to a registered person shall be the location of
such person;
b) The place of supply of services 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.
2) Services related to immovable property [Sec. 12(3)]

The place of supply of services:

Provision place of supply Place of supply shall be the location at which

(a) Following directly services in relation the immovable property or boat or vessel, as
to an immovable property: the case may be, is located or intended to be
 Services provided by architects, located.
interior decorators, surveyors,
engineers and other related experts or However, if the location of the immovable
estate agents, property or boat or vessel is located or

 Any service provided by way of grant intended to be located outside India, the
of rights to use immovable property or place of supply shall be the location of the
 For carrying out or co-ordination of recipient.
construction work.
(b) By way of lodging accommodation
Explanation: Where the immovable property
by a hotel, inn, guest house, home
or boat or vessel is located in more than one
stay, club or campsite, by whatever
state or UT, the supply of services shall be
name called, and including a house
treated as made in each of the respective
boat or any other vessel.
states or UTs, in proportion to the value for
services separately collected or determined
(c) By way accommodation in any
in terms of the contract or agreement entered
immovable property for organizing
into this regard or, in the absence of such
any marriage or reception or matters
contract or agreement on such other basis as
related there to, official, social,
may be prescribed.
cultural, religious or business function
including services provided in relation
to such function at such property.

(d) Any Services ancillary to the services

rehferred to in clauses (a), (b) and (c).
3) Services related to Restaurant & Catering Services, Fitness, Health etc. [Sec.
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.

4) Services related to Training and Performance Appraisal. [sec. 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.
5) Services related to Admission to a Cultural, Artistic, Sporting, Scientific,
Educational and others [Sec. 12(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 there to, shall be the place where the event is actually held or
where the park or such other place is located.

6) Services related to organizing a cultural, artistic, sporting, scientific, educational

and other event including conference, fair, exhibition, celebration etc. [Sec.
12(7)]

The place of supply of services shall be determined in following ways:

 If services are supplied to a registered person then the place of supply of services
shall be the location of such person;
 If services are supplied to a person other than a registered person then place of
supply 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.
7) Services related to a Transportation of Goods, including by mail or Courier [Sec.
12(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.

As per GST amendment act, 2018, a new provision has been inserted which provides
that where the transportation of goods is to a place outside India the place of supply
shall be the place of destination of goods.

8) Services related to a passenger transportation [sec. 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:

However, where the right to passenger 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 provision of sub-section
(2) i.e., general provision.

9) Services related to on board a conveyance [Sec. 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.

10) Services related to telecommunication services etc.

Section 12(11) classifies the telecommunication services into 3 categories for the
purpose of determining the place of supply. Telecommunication services includes
the services of telephone, data transfer (internet), cable, DTH (Direct to home)
services, etc. The place of supply for the three categories shall be understood from
the following table:

Supply Place of Supply

1. Services by way of fixed Place where the telecommunication

telecommunication line, leased line, leased circuit or cable connection
circuits, internet leased circuit,
 Supply Place of Supply

cable or dish antenna or dish antenna is installed.

2. Post-paid mobile connection and The billing address of recipient of

post-paid internet services services on the record of the supplier of
services

3. Pre-paid mobile connection and Through a selling agent or a re-seller or

pre-paid internet and DTH services a distributor of subscriber identity
through a voucher or any other module card or re-charge voucher, the
means address of the selling agent or the re-
seller, as per the records of the
supplier.

4. In other cases The address of the recipient as per the

records of the supplier of services and
if the address is not available the
location of supplier.

5. If payment is made through net The address of the recipient as per the
banking or E mode records of the supplier of services

11)Banking, financial and stock broking services [Section 12(12)]

The place of supply of banking and other financial services, including stock broking
services to any person is the location of the recipient of services on the records of the
supplier of services.

However, if the location of recipient of services is not on the records of the supplier,
the place of supply is the location of the supplier of services.
 12)Insurance services [Section 12(13)]

The Place of Supply is dependent on whether the Recipient is registered or

unregistered.

The place of supply of insurance services is the location of recipient when provided
to a registered recipient.

If such services are provided to a person other than a registered person, the place of
supply is the location of the recipient of services in the records of the supplier of
services.

13)Advertisement service to the Government [Section 12(14)]

Type of Service Place of Supply

Advertisement service to the Central Each of such States or Union territories

Government/State Government/Statutory where the advertisement is
body/Local authority meant for the State or broadcasted/run/played.
Union Territory identified in contract or
agreement

PLACE OF SUPPLY OF SERVICE WHERE LOCATION OF SUPPLIER OR

LOCATION OF RECIPIENT IS OUTSIDE INDIA [Sec. 13 IGST Act, 2017]

1. General /Default Rule [Sec. 13(2)]

The rule is applicable only if the supply of service does not fall in any of the
specific cases provided under section 13(3) to section 13(13).

The rules provides that the place of supply of services shall be the location of
recipient of services. However, where the location of the recipient of service is
not available in the ordinary course of business, the place of supply shall be the
location of the supply of services.

2. Performance based services [Sec. 13(3)]

The place of supply of the following services shall be the location where the
services are actually performed, namely:

1. Services supplied in respect of goods which are required to be made

physically available by the recipient of services to the supplier of services,
or to a person acting on behalf of the supplier of services in order to
provide the services.
However, when such services are provided from a remote
location by way of electronic means, the place of supply shall be the
location where goods are situated at the time of supply of services.
Moreover, nothing contained in this clause shall apply in the case of
services supplied in respect of goods which are temporarily imported into
India for repairs and are exported after repairs without being put to any
other use in India, than that which is required for such repairs.
For diamond industry it is provided that place of supply for services on
diamond which are temporarily imported into India and are not put to use,
shall be governed by section 13(2) i.e., the location of recipient if
available.
2. Services supplied to an individual, represented either as an individual,
represented either as the recipient of services or a person acting on behalf
of the recipient, which require the physical presence of the recipient of the
person acting on behalf, with the supplier for the supply of services.
3. Services related to immovable property [Sec. 13(4)]
The place of supply of:
 Services supplied directly in relation to an immovable property,
including services supplied in this regard by experts and estate
agents,
 Supply of accommodation by a hotel, inn, guest house, club or
campsite, by whatever name called,
 Grant of rights to use immovable property,
  Services for carrying out or co-ordination of construction work,
including that of architects or interior decorators, shall be the place
where the immovable property is located or intended to be located.
4. Services related to Admission to a cultural, artistic, sporting, scientific,
educational and others [Sec. 13(5)]

The place of supply of services supplied by way of admission to, or

organisation of cultural, artistic, sporting, scientific, educational or
entertainment event or a celebration, conference , fair or similar events and of
services ancillary to such admission or organisation, shall be the place where
the event is actually held.

5. Services supplied at more than one location [Sec. 13(6)]

Where any services referred to in sub-section (3) or Sub-Section (4) or sub-

Section (5) is supplied at more than one location, including a location in the
taxable territory, its place of supply shall be the location in the taxable
territory.

6. Services Supplied at more than one state [Sec. 13(7)]

Where the services referred to in sub-section (3) or Sub-section (4) or sub-

section (5) are supplied in more than one state or UT, the place of supply of
such services shall be taken as being in each of the respective states or UT and
the value of such supply specific to each state or UT shall be in proportion to
the value for services separately collected or determined in terms of the
contract or agreement entered into this regard or in the absence of such
contract or agreement, on such other basis as may be prescribed.

7. Certain cases where location of supplier is treated as place of supply

[sec. 13(8)]

The place of supply of the following services shall be the location of the
supplier of the services, namely:

 Services supplied be a banking company or a financial institution or a

non-banking financial company, to account holders;
 Intermediary services;
  Services consisting of hiring of means of transport, including yachts but
excluding aircrafts and vessels, up to a period of one month.
8. Services related to a transportation of goods, excludes by mail or
courier [Sec. 13(9)]

The place of supply of services of transportation of goods, other than by way of

mail or courier, shall be the place of destination of such goods.

9. Services related to a passenger transportation [Sec. 13(10)]

The place of supply in respect of passenger transportation services shall be the

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

10. Services related to on board a conveyance [Sec. 13(11)]

The place of supply of services provided on board a conveyance during the

course of a passenger transport operation, including services intended to be
wholly substantially consumed while on board, shall be the first scheduled
point of departure of that conveyance for the journey.

11. Services related to online Information and database access or retrieval

services [Sec. 13(12)]

The place of supply of online information and database access or retrieval

services shall be the location of the recipient of services. However, person
receiving such service will be deemed to be located in taxable territory (i.e.,
India) if any two of the following non- contradictory conditions are fulfilled:

i. The location of address presented by the recipient of service via internet

is in taxable territory.
ii. 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 service settles payment
has been issued in the taxable territory.
iii. The billing address of recipient of service is in the taxable territory;
iv. The internet protocol address of the device used by the recipient of
service is in the taxable territory;
v. The bank of recipient of service in which the account used for payment
is maintained is in the taxable territory;
vi. The country code of the subscriber identity module (SIM) card used by
the recipient of service is of taxable territory;
vii. The location of the fixed land through which the service is received by
the recipient is in taxable territory.
12. Power to issue of Notification [Sec. 13(13)]

In order to prevent double taxation or non- taxation of the supply of a service

or for the uniform application of rules, the govt shall have the power to notify
any description of services or circumstances in which the place of supply shall
be the place of effective use and enjoyment of service.
 BIBLIOGRAPHY
Books

 Goods and Services Tax & Custom Duty (SBPD Publications)