7

P TER
PLACE OF SUPPLY#
LEARNING 7.1 INTRODUCTION

After studying this chapter, you shall
be able to understand the following:
Domestic and Cross BorderTrans-
actions
Identifying Place of Supply
Supply of goods in domestic
transaction
Supply of goods in Cross Border
Transaction
Supply of Services in Domestic
Transaction
Supply of Services in Cross
Border Transaction
Special Provisions in Place of
Supply
The Sections quoted in this chapter pertain to the IGST Act, 2017, unless specifically mentioned otherwise.
GST is a destination based tax wherein the tax is payable in
the state where goods and services are finally consumed. The
taxes under GST may be CGST, SGST, UTGST and IGST. In
order to determine the type of GST, the nature of supply is
to be ascertained. This nature may be either Inter-state or
Intra-state. The supply of goods imported into, or exported
from India is treated as Inter-state supply.
Place of supply and location of supplier are the two major
determinants, while deciding the nature of supply. The sup
ply may be domestic or cross-border. The Domestic supply
may further be within or outside the state. This bifurcation
is applicable not only for goods but also for services.
The statutory provisions as regards above have been dis-
cussed in this chapter.
7.2 LEGAL FRAMEWORK
The provisions regarding place of supply of goods or services
are provided in Chapter V of IGST Act, vide sections 10-14
Section 10: Place of supply of goods other than supply of
goods imported int0, or exported from India
Section 11: Place of supply of goods imported into, or ex-
ported from India
Section 12: Place of supply of services where location of
supplier and recipient is in India
Section 13: Place of supply of services where location of
supplier or location of recipient is outside India
Section 14: Special provision for payment of tax by a sup
plier of online information and database access or retrieval
services

7.1
 Para 7.4 PLACE OF SUPPLY
7.2

7.3 IMPORTANCE OF PLACE OF SUPPLY

Place of supply is important to determine the kind of tax that is to be levied. "The IGST is levied in
case of inter-state supply whereas CGST and SGST become applicable in case of intra state supply
of supplier and the place
upon the location
hethera supply is inter-state or intra state, it depends
of Supply.
When the location of supplier and the place of supply are in two different States, it will be an In.
ter-State supply and IGST will be applicable but when the two are in the same State, then it will be

an Intra-State supply and CGST & SGST/UTGST is applicable.

Table-1
Case Location of Place of Supply Whether location of supplier Whether inter-State/
and the place of supply are intra-State
Supplier
in the same State

Bihar NO Inter-State (IGST)

Kerala
YES Intra-State (CGST&
2. Puducherry Puducherry
Puducherry GST)
Chandigarh Chandigarh YES Intra-State (CGST +UTGST)
Punjab NO Inter-State (1GST)
Chandigarh
Chandigarh Daman & Diu NO Inter-State(IGST)
. Goa Goa YES Intra-State(CGST+Goa GST)
Karnataka (SEZ) | Karnataka (non- Special case Inter-State
SEZ)
Thus, it is very important to understand the twophrases and the manner of determination of the two.
Location of Supplier" of Goods: The word location'refers tothe site orpremises i.e. the geographical
point where the supplier is situated together with the goods under his control, ready to be supplied.
Location of Supplier" of Services: Section 2(15) of the IGST Act, 2017 defines location of the sup-
plier ot services" as:
(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;
The term "place of supply" is a legal term and its meaning should be understood with the legal intent
and not in common parlance.
GST is a destination based consumption tax but no provision of law clarifies this concept. The
provisions of 'place of supply fully bridge this missing link. In each case of supply, the law makers
have declared the place of supply. It is the place of supply that will have right of accrual of revenue
7.4 TYPES OF SUPPLY

The GST laws have integrated the goods and services under the common name "supply". Consider
ing the need of the given chapter, the supplies may be divided on two bases, namely- Geographical
of recipient.
hasis and the purpose
 Para 7.4
TYPES OF SUPPLY
1.3
1. Domestic Supply
Geographical
Basis 2. Cross Border Supply

Type of Supply

Purpose of
1. B2B Supply
Recipient 2. B2C Supply

1.4.1 Geographical Basis

tax
boundaries of a country are important in determination of any type of
The geographical very
role in
GST also, the place of recipient and the place of supplier play signilicant
liability. Under
deciding the type of supply. On such basis, there can be following two types of supplies:
(a) Domestic Supply

(b) Cross border supply

Domestic Supply: It refers to those supply or transactions, where the supplier and recipient
(a) within India.
of Supply, both are located in India. The supply of goods o r services is
of services exported out
(b) Cross border supply: It is basically supply of goods o r provisioning
for determination
of India or imported into India. Section 11 deals with statutory provisions
India. Similarly, section 13
of place of supply of GOODS' imported into, o r exported from
deals with statutory provisions for determination of place
of supply of 'SERVICES' where
location of supplier or location of recipient is outside India.

7.4.2 Purpose of Recipient

be the end c o n s u m e r or
When supply is made in terms of goods o r services, the recipient may
On such basis, the supply may be classified as:
another business entity, for which it is an inward supply.

(a) Business to Business Supply (B2B Supply)

(b) Business to Consumer Supply (B2C Supply)

This determination is very essential in finding out the place of supply.

abbreviated as B2B. Under this type of supply,
(a) Business to Business Supply: It is commonly
businesses. It m e a n s the supplies a r e used by the
both the supplier and the recipient are
business. The tax paid by the recipient shall be
in the course of furtherance of the
recipient
It an event nmanagement company hires the services
available as input tax credit. For Example:
of a caterer, in the course of or in furtherance of their business, then it is a B2B supply.
abbreviated as B2C. Under this type of supply,
(b) Business to Consumer Supply: It is commonly
it is a transaction between a business and
the recipient is the final consumer. In other words,
a consumer. Accordingly, no credit
of Input tax is allowed to the c o n s u m e r . Suppose, Mr.
occasion of marriage of his daughter. In this
Sharma hires the services of a caterer on the
case, the recipient is end user. No question arises about availability of ITC to Mr. Sharma.
This type of supply is a B2C supply.
Difference between B2B and B2C Supply
B2B Supply B2C Supply
I t refers to Business to Business Supply. It refers to Business to Consumer
Supply.
The two parties are 'Business'and Bus1ness The two parties are 'Business' and Consumer.
3 The recipient is acting in the course of or in the | The recipient is the end user.
furtherance of his business.
|The recipient can claim ITC. No question arises about availability of ITC.
 Para 7.5 PLACE OF SUPPLY 1.4
7.5 PLACE OF SUPPLY OF DOMESTIC TRANSACTIONS INVOLVING GOODS

The section 10(1) of the 1GST Act has provided the five rules for determinatiorn or place ol supply

of domestic transactions, which are as follows:

a. Supply involving movement of goods
b. Goods delivered on bill to ship to model
c. Supplv not involving movement of goods
d. Goods assembled/installed at site
e. Goods supplied on board a conveyance
The Section 10(2) provides that if the place of supply cannot be determined as per any of the above
r'ules as given in section 10(1), the government may prescribe the manner to ascertain the place of

supply.
These rules and sub-rules are discussed in detail in the following paragraphs.
7.5.1 Supply involving movement of goods:
As per Section 10(M), "Where the supply involves movement of goods, whether by the supplieror
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."
In the case of supply, involving movement of goods, the place of supply is the location of the goods
at the time when the movement of goods terminates (ends) for delivery to the recipient. The move
ment can be undertaken by the supplier or the recipient. It may even be taken by any other person
after the supplier or the recipient discloses the destination to the person.

Example 7.1:
Xof Delhi and Y of Bengaluru entered into an agreement to supply the goods to Y at Bengaluru. The goods
arein Delhi,from where they will move to Bengaluru.Here,the place of supply is Bengaluru.
Table-2
Case Location of Place where Place of Supply Whether inter-State/
Supplier movement of intra-State
goods terminates

Supplier moved Himachal Himachal Himachal Intra-State (CGST &

thegoods from Pradesh Pradesh Pradesh SGST at Himachal
place of manu-
facture to the
Pradesh)
desired place
. of destination Himachal Haryana
Pradesh
Haryana Inter-State (IGST)
as conveyed by payable at Himachal
the buyer Pradesh

Recipient took Chandigarh Chandigarh Chandigarh Intra-State (CGST

thegoods UTGST at Chandi-
ex-factory trom
the premises garh)
of supplier and
moved them Chandigarh Uttar Pradesh Uttar Pradesh Inter-State (IGST)
to the desired payable at Chandi-
place. garh
 PLACE OF SUPPLY OF DOMESTIC TRANSACTIONS Para 7.5
INVOLVING GOODs
15
"Bill
s2 Goods delivered ship
on to to" Model
,5.2 ection 10(7X6) where the goods are delivered by the supplier to a recipient or any othet
Asper.
on the direction of a third person, whether acting as or otherwise, betore o r during
n g an agent
it
perent of goods, either by way of transter of documents of title to the goods
movement
o r otherwise,

that the said third person has received the of such

shall be deemed and the place of supply
goods
isshallll be the principal place of business of such person.
there are three parties involved:
Tn this situation,
(a)The
supplier
() The Recipient
io The 3rd party on whose instructions the goods are delivered
is the supplier of goods who delivers the s a m e to the second party,
the recipient.
The first party be acting as
on the instructions of a third party ie., the buyer who mav
This delivery is however,
or on his OWn account. It is deemed that the third person
has received the goods and the
an agent
the principal place of business of such third person.
place of supply is
the supplier to third person and
Technically, in this case, there are two supplies. The first is from the first
third person and the recipient. But, this section captures only
the second is between the
and third person. Therefore, the place of supply will be the principal place
supply between supplier
of business of third person.

Example 7.2:
the supplier i.e. Mr.
B of 'Delhi'. When goods start moving, B instructs
A of Maharashtra' supplied goods to of supply will be
Ahmedabad on his behalf. Now, in this example, the place
A to deliver the goods to 'C' at
section 10(1)(6) of the IGST Act, 2017.
Delhi as per
Table-3
Place of Business of Place of Whether inter-State
Case Location of Place where
goods are the third person on Supply intra-State
Supplier whose instructions
received by
are supplied
therecipient goods
to the recipient
Himachal Pradesh Himachal Inter-State (IGST) payable at
. Delhi Himachal
Pradesh Delhi
Pradesh Himachal Intra-State (CGST & SGST at
Himachal Pradesh
Himachal Haryana Pradesh Himachal pradesh)
Pradesh
Punjab Intra-State (CGST +SGST at
3. Punjab Punjab Punjab
Punjab)
Delhi Inter-State (IGST) at Uttar
Lucknow Chandigarh Delhi
Pradesh

Uttar Pradesh Uttar Inter-State (IGST) payable at

Jaipur Jaipur Pradesh Jaipur
Himachal Himachal Pradesh Himachal Inter-State (IGST) pavable at
Chandigarh Pradesh Chandigarh
Pradesh

7. Maharashtra Shimla Shimla Inter-State (IGST) payable at

Varanasi
Varanasi

5.3 Supply not involving movement of goods

As the
per Section 10(1\) "Where the supply does not involve movement of goods, (whether by
Pplier or the recipient), the place of supply shall be the location of such goods at the time of the
 PLACE OF SUPPLY OF DOMESTIC TRANSACTIONS INVOLVING GOODS Para 7.5
7.5

Goods delivered on "Bill to ship to" Model

7.5.2

ection 10(/Nb) where the goods are delivered by the supplier to a recipient or any other
on ithe direction ot a third person, whether acting as an agent or otherwise, belorc or durnE
person on
ds,
movement of goods either by way of transfer of docum
iments of title to the goods or otherwise, it
such
shall be e deemed thatthe said third person has reccived the goods and the place of supply of
goods shall be the principal place of business of such person.
In this situation, there are three parties involved:

(a) The supplier

() The Recipient

id The 3rd party on whose instructions the goods are delivered.

the recipient.
The first party is the supplier of goods who delivers the same to the second party, be
the instructions of a third party i.e., the buyer who may acting as
This delivery is however,
o

or on his Own account. It is deemed that the third person has

received the goods and the
an agent
place of supply is the principal place of business of such third person.
to third person and
Technically,in this case, there are two supplies. The first is from the supplier
the first
third person and the recipient. But, this section captures only
the second is between the
will be the principal place
supply between supplier and third person. Therefore, the place of supply
of business of third person.

Example 7.2:
to B of 'Delhi'. When goods start moving,
B instructs the supplier i.e. Mr. |
A of 'Maharashtra' supplied goods the place of supply will be
Ahmedabad on his behalf. Now, in this example,
A to deliver the goods to 'C' at
2017.
Delhi as per section 10(1)(6) of the IGST Act,
-

Table-3
Place of Business of Place of Whether inter-State/
Location of Place where
Case intra-State
Supplier goods are the third person on Supply
whose instructions
received by
the recipient |goods are supplied
to the recipient
Inter-State (IGST) payable at
Himachal Himachal Pradesh Himachal
Delhi Pradesh Delhi
Pradesh
Himachal Intra-State (CGST & SGST at
Himachal Pradesh
2. Himachal Haryana | Himachal pradesh)
Pradesh
Pradesh
Punjab Punjab Intra-State (CGST+SGST at
3.
Punjab Punjab
Punjab)
Delhi Inter-State (IGST) at Uttar
Delhi
Lucknow Chandigarh Pradesh

Uttar Pradesh Uttar Inter-State (IGST) payable at

5.
Jaipur Jaipur
Pradesh Jaipur
6. Himachal| Himachal Pradesh Himachal Inter-State (IGST) payable at
Chandigarh Pradesh Chandigarh
Pradesh
.
Varanasi
Maharashtra | Shimla Shimla Inter-State (IGST) payable at
Varanasi

.5.3 Supply not involving movement of goods

by the
per Section 10(1X) "Where the supply does not involve movement of goods, (whether
at the time of the
Pplier or the recipient), the place of supply shall be the location of such goods
 Para 7.5 PLACE OF SUPPLY
7.6
delhvery to the recipient". Here, it is not intended to cover cases where it is ditfficult to move, but t
cover those cases where the supply demands that good ought not to move.

r the supply does not involve movement of goods, the place of supply is the location of goods at
the time of delivery to the recipient.
Example 7.3:
X took a building on rent from Mr. Y. He bolted a machinery on the floorof the building. After three years he
vacated the building but agreed with the land lord to leave behind the machinery for the land lord without
dismantling it. The supply of machinery by the tenant to the Landlord does not involve movement of goods
andtheplace of supply shall be where the machine is fixed.

7.5.4 Supply involving Installation or Assembly of Goods:

As per Section 10(1)(d), "Where the goods are assembled, or installed at site, the place of supply
shall be the place of such installation or assembly." It is important to distinguish this installation or
assembly from "works contract." Works contract under GST is treated as supply of service and the
provisions of this section are therefore not applicable. Thus, if the supply involves goods which are
to be installed or assembled at site, the place of supply is the place of such installation or assembly.

Example7.4:
A purchases a Machine from B, where both A and B are in Delhi. The Machine, however, needs to be
installed in Faridabad (Haryana). The place of supply will be Faridabad (Haryana) as the Machine is installed
in Faridabad. Location of Supplier Delhi, Place of Supply Haryana : 1GST will be applicable.
Table-4

Case Location of Place where Place of Busi- Place of Whether inter-State/in-

Supplier goods are in- ness of the Supply tra-State
stalled recipient
1. Delhi Himachal Himachal Himachal Inter-State (1GST) payable at
|Pradesh Pradesh Pradesh Delhi
Himachal Haryana Himachal Haryana Inter-State (1GST) payable at
Pradesh Pradesh Himachal Pradesh)
3. Nagpur Punjab Goa Punjab Inter-State (IGST) payable at
Nagpur
Lucknow Chandigarh Delhi Chandigarh Inter-State (IGST) payable at

Uttar Pradesh
5. Jaipur Uttar Pradesh Shimla Uttar Inter-State (IGST) payable at
Pradesh Jaipur
6. Chandigarh Himachal Himachal Himachal Inter-State (IGST) payableat
Pradesh Pradesh Pradesh Chandigarh
7. Varanasi Varanasi Maharashtra Varanasi Intra-State (CGST and SGST)
payable at Varanasi

7.5.5 Goods supplied on Board a Conveyance

As per Section 10(Me), "Where the goods are supplied on board a conveyance, including a vesse
an aircraft, a train or a motor vehicle, the place of supply shall be the location at which such goods
are taken on board. The supplier may himself supply the goods to the passengers, like sales man ot
a Darticular company selling packed eatables which they carry along specifically for the purpost
of sale or the goods sold
to
the operator of the conveyance and the operator selling to the trave
In the second case, there are two supplies, the first is the supply to the operator
lingpassengers. the operator of conveyance to the passengers on board
convevance and second 1S tne supPIy by
 7.7 PLACE OF SUPPLY OF GOODS Para 7.7

during the journey. In the second case, this section covers the second supply from thc operator of
the conveyance to the passengers on board during journey.
The place of supply of goods supplied on board a conveyance like aircraft, train, vessel, motor
vehicle, etc. is the location where such goods have been taken on board. These goods are sold during
the journey on board a conveyance.

Example 7.5:
Mr. Z boarded the train at New Delhi for its destination Mumbai. He carried some goods with him for the
purpose oftsale during the journey. When the train reaches Surat, he sells certain goods. Now, in this case
the place of supply ofsuch goods will be New Delhi i.e. the location at which the goods are taken on board.
Table 5
Case Location of Place where Place where the Place of Whether inter-State/
Supplier goods are taken goods are supplied Supply intra-State
on board a con to the passengers
veyance during journey
1. Delhi Delhi
Delhi Delhi Intra-State
2 Himachal Punjab Himachal Pradesh Punjab Inter-State (IGST) payable
Pradesh at Himachal Pradesh)
3. Nagpur Rajasthan Nagpur Rajasthan Inter-State (IGST) payable
at Nagpur
4. Lucknow Delhi Delhi Delhi Inter-State (IGST) payable
at Lucknow.
5. Chennai Chennai Surat Chennai Intra-State CGST & SGST
payable at Chennai
6 Chandigarh Haryana Himachal Pradesh Haryana Inter-State (IGST) payable
at Chandigarh

7.6 WHEN PLACE OF SUPPLY CANNOT BE DETERMINED AS ABOVVE

Where the place of supply of goods cannot be determined, the place of supply shall be determined in
such manner as may be prescribed. Where none of the above provisions are applicable to determine
the place of supply of goods, the Central Government will prescribe rules on the recommendations
the GST Council regarding the of determination. However, it must be ensured before
of manner its
taking recourse to residual provisions that the Supply is one which is not already covered by any
of the earlier sub-sections.
 Para 7.8 PLACE OF SUPPLY
7.8
7.7.1 Export of goods
When goods are exported from India, then the place of supply of such goods shall be the locat
Outside India i.e. the place where the goods have been exported. "Export means taking goods
of India". Such export of goods have been treated as inter- state supply
ndia to a place outside
no GST is
h
payable as it has been declared as Zero rated supplies.
7.7.2 Import of goods:
the goods have been importcd into India, the place of supply of goods is the place where th
importer is located. n this regard, Import has been defined as bringing into India from a plae.
outside India. It is treated as inter-state supplies and it attracts IGST along with Customs Dutics.in
the case of some products like Pan Masala, GST compensation cess is also levied.

Example 7.6:
ZofChennaiimported goods from USA. The place of supply will be Chennaii.e.thelocation of Importer
Table 6 Import of Goods

Case Location of Place where Place where Location of im- Place of Supply
Supplier goods are locat- the goods are porter
ed before supply Supplied
England England Delhi Delhi Delhi
2. Haryana USA
Denmark Punjab Not an import
3. USA USA Nagpur Delhi Delhi

7.8 PLACE OF SUPPLY OF SERVICES WHERE LOCATION OF SUPPLIER OF SERVICE

ANDTHE LOCATIONOF THE RECIPIENTOF SERVICEISININDIA:[DOMESTIC TRANS
ACTION IN SERVICES]

As per section 12 of the IGST Act, 2017, when the location of

supplier of service and the location of
recipient of service is in India, the place of supply of services is governed by
(a) General Provisions
(b) Specific Provisions
Before discussing these General and Specific provisions, it is
necessary to understand the two related
terms namely location of recipient of services and the location of
supplier of services.
7.8.1 Definition of Location of Recipient & Supplier
Location of Recipient of Services
As per Section 2(14) of the IGST Act, 2017, Location of the
recipient of services means:
(a) where a supply is received at a place of business for which registration has been obtainea.
the location of such place or business;
(b) where a supply is received at a place other than the
place of business for which registration
has been obtained, that is to say, a fixed establishment elsewhere, the location of such fixe
establishment;
(c) where a supply is received at more than one establishment, whether the place of busines
or fixed establishment, the location of the establishment most directly concerned with the

receipt of the supply; and

(dh in absence of such places, the location of the usual place of residence of the recipient.
 PLACE OF SUPPLY OF SERVICES Para 7.8
7.9
Location of Supplier of Services:
As per Section 2(15) of the IGST Act, Location of the supplier of services means:
(a) where a supply is made from a place of business for which 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, that is to say, a fixed establishment elsewhere, the location of such fixed
establishment;
(c) where a supply is made from more than one establishment, whether the place ot 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.

7.8.2 General Provisions

(a) When the recipient is registered person
In casc, the recipient is a registered person, the location of such registered person shall be
the place of supplv. For Example: A supplies services to B, who is a registered person. In this
case, the place of supply will be the location of such registered person ie. the location of B.

(b) When the recipient is unregistered person

In case, ihe recipient is a unregistered person, the place of supply will still be the location of
recipient, if the address of recipient exists on record. This means the supplier has taken the
address and other details of the recipient at the time of supply of services.
However, in case the address of recipient does not exist on record, then place of supply of
service would be the location of the supplier. For Example: A of Delhi supplies services to B
of Pune. B is not a registered person. A does not have any address of B in his records. Here,
the place of supply will be the location of the supplier ie. Delhi, the location of Mr. A.

Example 7.7:
A provides designing services to an Advertisement Company. The recipient company is a registered person.
The location of recipicnt ic. the location of theadvertising companywill bethe place ofsupply

Example 7.8:
Mr. A supplies services to Mr. B in India. Mr. B is not a registered person but A has the address of B in his
The place of supply will be the location of B.
records.

Example 7.9
A Barber provides senices to so many customers daily but he does not record their names and addresses.
The place of supply will be the location ofthe Barber.

7.8.3 Specific Provisions

he general provisions do not appropriately cover all situations of provisions of services. There-
tore, special provisions are applicable for specilic services. These are provided in sub-section (3) to
sub-section (14) of section 12. These are discussed as follows:
1. Services in relation to an immovable property/boat/ vessel [Section 12(3)]
Seetion 123) covers supplies of services which are in relation to an immovable propertv or
aboat vessel. These services
or a classitied
are as follows:
Para 1.8 PLACE OF SLPPLY

Category Service Place of Supply Example

(a) Services provided directly The lscation of immovable Kprovided archi
iT relatiu a n irnmorable property or the boat or the vices to¥ ot Delni
pruperty including thse by vessel is the plece of supply. are regstered und
architect, interior deratis, Wher: the immoiao.E 1as place ot busin.
oru
p The building s su
uryesor, engineer,
related ers emends to
Experts arnd estate agent. one sta1e union 1erritor
noEain Delhi The plate of spp
be Dehi
E $ericEs is deemed to
have beern supplied in each of
the respetive states Union
territories proportionately
in terms i the value of the
services.
(b) Service provided by way of Where the services are pro-
grant of rights to use inmor- vided outside India, Location
able pruperty or for carrying of the recipient
out or cTdinatiOn o con Note
struction work
The lines given abovealong
(c) Services provided by way
owith paragraph appearinguresn, registered person a

odging, acwommdation oy aunderthesame place of business in

Colurnn n
applicaDie topiAhmedabad.
Hotcl, Inn, house, nome
guest vious page is He visits Mum-
stav, Club, Campsite, nouse the a hai for business purpose
hoat Vessel Categories trom 4) to and stavs in a hotel
there
The place of suppl: will b
Murnbai where the Hotel is
located
(d) Services provided by way A is a rich businessman
o
of accommodation in an Delhi He hosts the marriage
immovable property for of his daughter in the Cdaipur
organizing any marriage fort in daipur Rajasthan.
reception or matters related Theplace of supply of service
thercto, official, social, cul- will be Cdaipur. In fact, al
tural, religious or business
functions including services other services provided at the
Udaipur Fort for the conduct
provided in relation to such of marriage will also have
function at such property
place of supply as Udaipur.
(e) Services ancillary to the
above-mentioned services.
The provisions relating to place of supply can be summarized as follows:
Nature of Supply Location of immovable Place of Supply
property/boat/vessel
Supply of services relating toimmov- In India Location of such immovable prop
able property/ boat/vessel, including
accommodation therein.
erty/boat/ vessel
Outside India
Location of the recipient
Computation of value of services where immovable property is located in more than one State
and where the location of supplier and recipient is in India [New rule 4 of the IGST Rules
(effective from 1-1-2019)]
Section 12(3) of the IGST Act provides that the place of supply of services, in relation to
immovable property or a boat or a vessel, shal be the location at which immovable property
or boat or vessel is located or intended to be located. However, in case where the immovable

vessel is located than

Droperts or boat or in more one
State/UT, the service is deemed to
 PLACE OF SUPPLY OF Para 7.8
SERVICES
1.11
ave been supplied in each ofthe respective States/UT, proportionately in terms of value of
ices determined as per rule 4 in the following manner:

S. Type of service in relation to immovable Factor which determines the proportionate

No. property value of service

(a) Service provided by way of lodging accommo- Number of nights stayed in such plOP
dation by hotel, inn, guest house etc. and
itsExamnle: A hotel chain X charges a
ancillary services (Other than the cases where sumof z 30 000 for stay in its two consolldatc
such property is a single property located in 2
establishmens
in Delhi and Agra, where the stay in Deini is
or more contiguous States/UT or both) for 2 nights and the stay in Agra is for 1 night.
in the
The place of supply in this case is both
Union territory of Delhi and in the State of
Uttar Pradesh and the service shal be deemed
to have been provided in the Union territory
of Delhi and in the State of Uttar Pradesh in
the ratio 2:1 respectively. The value of services
provided will thus be apportioned as F 20,000
in the Union territory of Delhi and 7 10,000 in
the State of Uttar Pradesh.

b) All other services provided in relation to im- Area of the immovable property lying in each
movable property including State/UT
Services by way of accommodation in Example: There is a piece of land of area 20,000
in State S 1 say 12,000
any immovable property for organising square feet which is partly
square feet and partly in
State S 2, say 8000
any marriage or reception etc.
preparation work has been
feet. Site
Supply of accommodation by a hotel, inn, Square
to 1. The rati0 of land in the two states
whateverentrusted
guest house, club orcampsite, by The place
WOrks out to 12:8 or and(simplified).
3:2
name called where such property is a single
S2. The service shall
property located in 2 o r more contiguousOr
supply is in both Sl
be deemed to have been provided in the ratio
States or/and UT of 12:8 or 3:2 (simplified) in the States Sl and
Services ancillary to services mentioned s 2 respectively. The value of the service shall
above be accordingly apportioned between the States.

Time spent by the boat or vessel in each such

(c) Services by way of lodging accommodation by
services State/UT, to be determined on the basis of
a house boat or vessel and its ancillary
declaration made by the service provider.
Example: A company provides the service of
24 hours accommodation in a houseboat, which
is situated both in Kerala and Karnataka in as
much as the guests board the house boat in
Kerala and stay there for 22 hours but it also
moves into Karnataka for 2 hours (as declared
by the service provider). The place of supply
of this service is in the States of Kerala and
Karnataka. The service shall be deemed to have
been provided in the ratio of 22:2 or 11:1 (sim-
plified) in the States of Kerala and Karnataka.
respectively. The value of the service shall be |
accordingly apportioned between the States

Example 7.10 (Place of Supply of services directly in relation to immovable property)

In the light of section 12(3) of the IGST Act and the related proviso, the Place of Supply
(POS) will be determined in the following manner:
Para 7.8 PLACE OF SUPPLY 7.12

Situation
(a) Mr. X of Chennai hired the services of
interior decorator Mr. Y of Surat for
redoing his home in Singapore.
(b) |Atul of Delhi entered intoa lease agree-
ment with Manish of Delhi whereby|
he leased out his farm in Faridabad to
Manish.
(c)Shahrukh Khan of Mumbai purchased Mumbai
a bungalow in USA. He hires
Bangalore|
based architect to design a structure for
his bungalow.
(d) | Mr. Vikram, an employee of "Viraj com-
munication", Delhi, goes on an official
tour to Nagpur and stays in a hotel there,
booked in the name of his company.
POS Reason
Chennai Since the property Is located outside
India, therefore, as per proviso to section
12(3) of the IGST Act, 2017, the place of
supply will be Chennai, being the location
of recipient.
Farid- Any service provided by way of grant of
abad rights to use immovable property is cov.
ered under section 12(3). Though both the
supplier and the recipient are in Delhi but
the POS shall be the location of immovable
property, here being Faridabad.
Sincethe immovable property is located|
outside India, therefore, as per proviso to
section 12(3) of the IGST Act, 2017, the
place of supply will be Mumbai, being the
location of recipient.
Nagpur Section 12(3)covers accommodation ser-
vice. The place of supply shall be location
of immovable property.

2. Restaurant service, personal grooming/fitness/beauty and health services [Section 12(4)]

The place of supply of restaurant and catering services, personal grooming, fitness, beauty
treatment, health service including cosmetic and plastic surgery is the location where such
services are actually pertormed.

Example 7.11:
Z stays in Delhi but visits a nearby
Gymnasium in Noida (UP). The place of supply will be Noida,
where services are actually pertormed.

3. Training and performance appraisal services [Section 12(5)]

The place of supply of services in relation to
training and performance
appraisal dependsis
upon whether the supply is B2B or B2C. In B2B supply i.e., where the recipient of service
a
registered person, the place of supply is the location of such person. However, in case of
B2C supply i.e., where the recipient of service is
where the service is
unregistered, the place of supply is the place
actually performed.
Type of service
Place of Supply
B2B Supply B2C Supply
Training and pertormance Location of registered Location where the services are
appraisall Recipient pertormed.
Example 7.12:
Z carries performance appraisal of the
employees of XYZ a firm which is not registered under
Act. XYZ is located in Moradabad but appraisal was conducted in the
Nainital. As XYZ is not
the place of supply shall be the place where services are registered,
actually performed i.e. Nainital.
4. Services by way of admission to events/amusement park//other places [Section 12(6)]
The place of supply of following services-
7.13 PIACE OF SUPPLY OF SEKVIE Pare 1

S.No. Supply Place of Supply Example

1 Services provided by way of ad- Place where the
mission to certain events
es ent Zures t 1it r .
IS actually held or He er a pa: 2 a
2. Services provided by wav of ad- herethe park or such Snimiz ard pa+ e
mission to amusement park or an other place is lated. pae v p e Jas
other place
3 Services ancillary to the above-
mentioned services
5. Organisation of events [Section 12(7)]
The Place ofSupply is dependent on whether the Recipient is registered r unregisi
When such service is provided to a registered person, the
placei supply s lcation reper
When it is provided to an unregistered person, the place of supply is the icatin where the
event is actually held and if the event is held outside India. the place of supply is the iocatin
of recipient.
Type of Service Place of Supply_
Recipient is Recipient is
registered unregistered
Organisation of events or services ancillary to the same or Location of re- Location wn
assigning of sponsorship to such events. For example cultural. cipient (in all he erent
artistic, sporting, scientific, educational or entertainment event, Cases)
conference, fair, exhibition, celebration or other similar event
Organisation of "events outside India" Location rE-
Cpent

If the event is held in more than one State/Union Territory and a consolidated amount is
charged for services relating to such event, the place of supply of such services is deemed to
be in each of the respective States/Union territories in proportion to the value for
serices
Example 7.13:
A company having place of Business in Hyderabad (Andhra Pradesh). duly registered under GST
hires the services of X of Delhi for organizing promotional events for the company at all the metro-
politan cities. The place of supply is Hyderabad, as "A" is a registered company. If A is not registered
the place of supply will be each place where the event is held.

Example 7.14:
In the Example 7.13, if events were held in New York and London, the place of supply would be the
|location of recipient i.e. still Hyderabad.

Computation of value of services where event is organised in more than one State and where
the location of supplier and the recipient is in India [New rule 5 of the IGST Rules (effective
from 1-1-2019)]
Section 12(7) of the IGST Act provides that when services provided by way of organisation
of events including services ancillary to such organisation or assigning of sponsorship to
Such events, is provided to an unregistered person, the place of supply of such service is the
location where the event is actually held.
t
event is held in nmore
the than
one
State/UT and a consolidated amount is charged for
services relating to such event, the place of supply of such service is deemed to be in each
ot the respective State/UT in proportion to the value of services determined in terms ot the
contract or agreement entered into in this
regard. In the absence of any such contract o
Para 7.8 PLACE OF SUPPLY
7.14
agreement, the value is determined in accordance with Rule 5 by the application of generall
accepted accounting principles.
Example: An event management company E has to organize some promotional events in
States S1 and $2 for a recipient R (unregistered). 3 events are to be organized in Si and 2
in S2. They charge a consolidated amount of 7 10,00,000 from R. The place of supply of this
service is in both the States S1 and $2. Say the proportion arrived at by the application of
generally accepted accounting principles is 3:2. The service shall be deemed to have been
provided in the ratio 3:2 in S1 and $2 respectively. The value of services provided will thus
be apportioned as 7 6,00,000 in S1 and 4,00,000 in $2.
6. Transportation of goods including mails [Section 12(8)]
The place of supply of services by way of transportation of goods including by mail, or courier,
etc. provided to a registered person is the location of such person.
However, where such services are provided to an unregistered person, the place of supplv is
the location at which such goods are handed over for their transportation.

Type of Service Place of Supply

If Recipient is If Recipient is
Registered Unregistered
Services by way of transportation of Location ofrecipient Location at which such goods are
goods including by mail, or courier, etc. handed over for their transportation.
A new proviso has been inserted in section
12(8) by IGST (Amendment) Act, 2018 vide No-
tification No. 01/2019-Integrated Tax, dt. 29-1-2019. This proviso lays down that where the
transportation of goods is to a place outside India, the place of supply shall be the place of
destination of such goods. Therefore, in case where the location of
India and goods are transported to a place outside India, the
supplier and recipient is in
service shall be the place of destination of such
place supply of transportation
of
goods, ie. outside India.
Example 7.15:
|ABC is a registered Company in Kolkata. It hires the services of a courier
send some important documents from Chennai company in Chennai to
office to the New Delhi branch. Since the
ABC is registered the place of
supply will be the location of recipient, i.e. Kolkata. recipient
If ABC had been unregistered, the
place of supply would have been the location, where
handed over for their transportation i.e. Chennai. goods are

Example 7.16:
X is working in an MNC in Bengaluru. He has been transferred to Pune. He hired the services of
"Movers and Packers" to shift his household goods trom
the place of supply is Bengaluru Bengaluru to Pune. Since X is unregistered
where the goods are handed over for their transportation.
7. Passenger transportation service [Section 12(9)]
The Place of Supply is dependent on whether the Recipient is registered or
When such service is provided to a registered person, the place of
unregistered.
When it is provided to an unregistered person, the place of supply location of recipient.
is
supply of passenger transportation
shall be the place where the passenger embarkS on the
conveyance for a continuous journey
Type of Service
Place of Supply
Recipient is Recipient is unregistered
registered
Passenger transportation Location of the Location where the passenger embarks on the
recipient conveyance for a continuous journey
 PLACE OF SUPPLY OF SERVICES Para 7.8
7.15
Type of Service
Place of Supply
Recipient is Recipient is unregistered
registered
Issue of right to passage for Location of the If the address of the unrcgistered person is avail-
future use and the point of able in the records of the supplier, the location of
recipient
boarding not known at the such unregistered person.
time of issue of right
services
Inothercases, the location of the supplierof
Example 7.17:
Mr. C travels from Mumbai to Nagpur. C is registered person in Delhi and therefore the place ot
supply is the location of recipient which is Delhi.

Example 7.18:
Mr. A is unregistered person who lives in Kolkata. His address is known to the supplier. He boards a
trainat Jaipurtotravel to Kolkata. The place of supply is Jaipur.

Example7.19:
Mr. A buys a metro card in New-Delhi. He is entitled to use the card anywhere in Delhi, Faridabad,
and Noida which is not predetermined at the time of buying the card. Here, the place of
supply will
be the location of the supplier of services i.e. New-Delhi. The Metro company does not have the
address of Mr. A

Example 7.20:
Saksham books an air ticket from Delhi to Goa and back from Goa to Delhi. He buys the ticket in
Gurgaon (Haryana). He is an unregistered person. The place of supply will be Delhi for the outward
journey and Goa for the return journey.
8. Service supplied on board a conveyance [Section 12(10)
For determining the place of supply of both goods and services supplied on board a convey
ance, no distinction is made between registered and unregistered recipients.
Type of Service Place of Supply Example
Service supplied on Location of the first | In India "Enjoy on wheels" is a train which runs
board a conveyance scheduled point of de- from Jaipur to Kanyakumari and provides enter-
such as vessel, aircraft, | parture of that convey- tainment services. For outward journey the place
train or motor vehicle. | ance for the journey of supply will be Jaipur and For Return Journey
It will be Kanyakumari.

Example 7.21:
Para 7.8 PLACE OF SUPPILY
7.16
Supply Place of Supply Example
2. Post-paid mobile connection The billing address of recipicnt A takes a pst.paid tclepthee
and post-paid internet services of services on the record of the connection. Place f supni
will be the address f
phy
supplier ol services A
records with the supplier

3. Pre-paid mobile connection Throughaselling agent orare-scll-

subscriber
and pre-paid internet and DTH distributor
er or a
of
services through a voucher or identity module card or re-charge
any other means VOucher, the address of the selling
the
agcnt or the re-scller, as per
records of the suppler.
4. In other cases The address of the recipient as

the supplier of
per the records of
services and if the address is not
available the location of supplier.
5. If payment is made through The addres of the recipient as
of
net banking or E mode per the records of the supplier
services
installed in m o r e than one State and
Computation of value of services where leased circuit is
rule 6 of the IGST Rules
where the location of supplier and the recipient is in India [New
(effective from 01.01.2019)]
of services in relation to
Section12(11)(a) of the IGST Act determines the place of supply
telecommunication line, leased circuits.
telecommunication services provided using a fixed
Internet leased circuits, cable or dish antenna. The place of supply
of such services is the lo-
cable connection or dish antenna
cation where the telecommunication line, leased circuit or
is installed for receipt of services.
consolidated amount is
If the leascd circuit is installed in more than one State/UT and a
in each of the respective
charged for supply of services, the place of supply is deemed to be
States/UT in proportion to the value of services determined in terms of the
contract or

agreement entered into in this regard.

In the absence of such contract or agreement, the value is determined in accordance
any
with rule 6 in proportion to the number of points lying in the State/UT

The number of points in a circuit is determined in the following manner:

S. Number of Points Example

No.
7.17 PLACE OF SUPPLY OF SERVICES Para 7.8

S. Number of Points Example

No.
(i) Any intermediate point or place in the circuit
will also constitute a point provided that the
benefit of the leased circuit is also available at
that intermediate point
Example 1:A company Tinstalls a leased circuit
between the Chennai, Bengaluru and Mysuru
offices of a company C. The starting point of this
circuit is in Chennai and the end point of the
circuit is in Mysuru. The circuit also connects

Bengaluru. Hence, one point of this circuit is in

Tamil Nadu and two points in Karnataka. The
place of supply of this service is in the States of
Tamil Nadu and Karnataka. The service shall be
deemed to have been provided in the ratio of
:2 in the States of Tamil Nadu and Karnataka,
respectively.
Example 2: A company T installs a leased cir
cuit between the Kolkata, Patna and Guwahati
offices of a company C. There are 3 points in
this circuit in Kolkata, Patna and Guwahati. One
point each of this circuit is, therefore, in West
Bengal, Bihar and Assam.
The place of supply of this service is in the States
of West Bengal, Bihar and Assam. The service
shall be deemed to have been provided in the
ratio of 1:1:1 in the States of West Bengal, Bihar
and Assam, respectively.
10. Banking, financial and stock broking services [Section 12(12)]
stock broking services
The place of supply of banking and other financial services, including
the records of the of
to any person is the location of the recipient of services on supplier
services.

However, if the location of recipient of services

is not on the records of the supplier, the place
of services.
of supply is the location of the supplier

Example 7.22: Place of is

in Mumbai. A resides in Kota (Rajasthan). supply
A buys shares from a stock broker "C"
which is Kota.
the address of A in the records of "C",

11. Insurance services [Section 12(13)]

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

services is the location of recipient when provided to

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

Example 7.23:
location of
his assets insured. The place of supply is the
XY Ltd. is registered in Gurgaon and gets
recipient i.e., Gurgaon.

Example 7.24: or A
is location
insurance policy for his health. The place of supply
X IS unregistered but he takes an
insurer.
i.e. the address of X in the records of the
 C
ment/State Government/Statutory body/Local advertisement is broadcasted/run/played.
authority meant for the State or Union Teritory
identificd in contract or agreement
Example 7.25:
Delhi Government contracts with an advertisement agency tor promotion of a major event to be held
in Delhi. The government demands that the bill boards for the same be displayed all over India. The
place of Supply will be all the States and the Union territories where the bill boards are displaved
In case of advertisements over the internet, service is deemed to be provided all over India
[Rule 3 of the IGST Rules effective from 01.01.2019]
Rule 3 of the IGST Rules provides the mechanism to determine the proportionate value
attributable to different States or Union Territories (UT), in the case of supply of advertise
ment services to the Central Government State Government Statutory body/local authority,
under section 12(14) of the IGST Act, in the absence of any contract (in this regard) between
the supplier of service and recipient of services.
Rule 3(5) inter alia provided that in the case of advertisements over internet, the amount
attributable to the value of advertisement service disseminated in a State/UT shall be cal.
culated on the basis of the internet subscribers in such State/UT, which in turn, shall be
calculated in the manner prescribed therein.
The said provision in Rule 3 has been amended to provide that in case of advertisements
over internet, the advertisement service shall be deemed to have been provided all over India.
Thus, the value of such service will be apportioned amongst all States and UTs, of India in
the manner prescribed therein.

7.9 PLACE OF SUPPLY OF SERVICES WHERE LOCATION OF SUPPLIER OR LOCATION

OF RECIPIENT IS OUTSIDE INDIA ICROSS BORDER TRANSACTIONS

The place of supply of services where location of supplier or location of recipient is outside India
are also governed by General and specific provisions.
The General Provisions are given under section 13(2) whereas the sub-sections (3) to (13) govern
the specific provisions
As per Section 2(6), the term 'Export of service' means, the supply of any service when

(a) The supplier of service is located in India,

(b) The recipient of service is located outside India,
(c) The place of supply of service is outside India,
tor such service has been received by the supplier of service in convertible
(d The payment
foreign exchange, and

supplier ot service and recipient of service are not merely establishments of a distinct
(e) The
accordance with explanation I of section 8.
person in
the term impOrt of services'
means the suPply of any service, where
As per Section 2(11),
is located outside India,
(a) The supplier of service
7.19 PLACE OF SUPPLY OF SERVICES Para 7.9

(b) The recipient of service is located in India, and

()The place of supply of service is in India.

7.9.1 General Provisions

As per sections 13(2), the location of the
recipient of services shall be the place of supply of services
Where the location of the recipient of services is not available in the ordinary course of business,
the place of supply shall be the location of the
supplier of services.
Example 7.26:
|A of US provided services to B in India, the Place of supply will be the place of Business of B.

7.9.2 Specific provisions:

The general provisions do not govern all cross border services. Some of the specific services have
been covered under section 13(3) to 13(12). Further, the Central
government has been will be the
under section 13(13) to notify services or circumstances for which the place of supplyempowered
place of etfective use and enjoyment of services so as to prevent double taxation/non-taxation of
the supply of a service.
The principal exceptions to the above general rule
relating to place of supply of cross border services
as covered under section
13(3) to section 13(12) are:
1. Performance-based services
2. Services directly in relation to immovable property
3. Admission to and/or organization of events, celebrations etc.
4. Services supplied by a banking company, financial institution, non-banking financial company
(NBFS) to account holders
5. Intermediary services
6. Hiring of me s of transport other than aircratts and vessels except yachts, up to a period of
one month

7. Transportation of goods, other than by way of mail or courier

8. Passenger transportation services.
9. Services on board
conveyance during the course of a passenger transport
a
operation
10. Online information and database access or retrieval services.
1. Perfornmance based services [Section 13(3)]
Type of Service Place of Supply
1. Services requiring physical presence of Location where the service is
goods. actually performed
Exceptions: Location of the recipient and it will be the Location
(a) Services supplied in respect of goods, which are o r the supplier, if location of recipient is not available

temporarily imported into India for repairs or

for any other treatment or process and are ex-
ported after such repairs or treatment or process,
without being put to any use in India, other
than that which is required for such repairs or
treatment or process. [As amended by IGST
(Amendment) Act, 2018, w.e.f. 1-2-2019 vide
Notification No. 01/2019-Integrated Tax, dt.
29-1-2019.]
 Para 7.9 PLACE OF SUPPLY 7.20
(b) Services supplied in respect of goods, that are Location where goods are situated at the time of

provided from a remote location by electronic supply of serViCes

means
2. Services supplied to an individual, which require | Location where the service is actually performed
the physical presence of the recipient
3. If the above services are supplied at more than Location in the taxable territory
one location, including a location in taxable |
territory
4. If the above services are supplied in more than Each of state/union terTitory
one state/union territory

Example7.27:
Z wants to install machinery in Faridabad which is to imported from Japan. The Engineers from Japan have
to come to India for the purpose of installation of the machinery. Here, the services are such which requires
the physical presence of the Engineer; therefore, the place of supply will be the place where the machinery
is installed that is Faridabad.

Example7.28:
A of USA sent its machine to India for repairs. C repaired the machine and without any use in India, export.
ed it back to USA. The place of supply will bethe location of A ie. USA. If the location of A was not known,
thenit would havebeen the location of Supplier C.
Computation of value of services where the service is performed in more than one State and where
the location of supplier or the recipient is outside India
[New rule 7 of the IGST Rules (effective
from 01.01.2019)]
Section 13(3) of the IGST Act determines the place of
supply of services supplied (i) in respect of
goods requiring physical presence of such goods and (i) to an individual
requiring his physical
presence. The place of supply of such services is the location where such services are
As per section
performed.
13(7) of the IGST Act,
if such services are
supplied in more than one State/UT, the
of
place supply of such services is taken as being in each such
State/UT and the
supplies is determined in terms of the contract or agreement entered into in this value ofInsuch
absence of any such contract or agreement, the value is regard. the
determined in accordance with 7 in rule
the following manner:-
S. Cases Manner of computing the proportionate
No.
value of service
(i) | Services supplied on the same goods
Equally dividing the value of service in each of the
States/UT where the service is
performed.
Example:A company Cwhich is located in Kolkata
is providing the services
of testing of a
machine and the testing service dredging|
on the machine
is carried
out in Orissa and
Andhra Pradesh. The
place supply is in Orissa and Andhra
of
and the value of the service
in Orissa and
Pradesh
Pradesh will be ascertained Andhra
by
of the service equally between dividing the value
these two States.
(i) Services supplied on different goods
Considering the ratio of the invoice value of goods
in each States/UT, on which
service is
asthe ratio of the value of the service performed,
in each State/UT.
performea
 PLACE OF SUPPLY OF SERVICES Para 7.9
7.21

S. Cases Manner of computing the proportionate

No.
value of service

Example: A company C which is located in Delhi

IS providing the service of servicing of two cars

belonging to Mr.X. One car is of manufacturer J

and is located in Delhi and is serviced by its Delhi
workshop. The other car is of manufacturer A
Gurugram and is serviced by its
and is located in
attrib-
Gurugram workshop. The value of service
utable to the UT of Delhi and the State of Haryana|
respectively shall be calculated by applying the ratio
of the invoice value of car J and the invoice value
of car A, to the total value of the service.

(iin Services supplied toindividuals Applying generally accepted accounting principle

Example: A makeup artist M has to provide make
up services to an actor A. A is shooting some scenes
in Mumbai and some scenes in Goa. M provides the
makeup services in Mumbai and Goa. The services
are provided in Maharashtra and Goa and the
value of the service in Maharashtra and Goa will
be ascertained by applying the generally accepted
accounting principles.
2. Services in relation to immovable property [Section 13(4)]

Nature of Supply Place of Supply

Services supplied directly in relation to an immovable property like Location ofimmovableproperty
Services of experts and estate agents
Accommodation by a hotel, inn, guest house, club orcampsite
Grant or rights use immovable property
Construction and related services

Services of architects or interior decorators

Ifthe above services are supplied at more than one location, including a Location in the taxable territory
location in taxable territory
If the above services are suppliedin morethan one state/union territory Each of State/Union Territory

Example 7.29:
An architect provided the service to A of Dubai in respect ot a house in Jaipur. Since the house is located
in Jaipur the place of Supply shall be the location in Jaipur. Had he also provided the services for another
| house in Dubai, the service would be provided in more than one location and one of them being in taxable
territory, the place of supply would still be Jaipur.

3. Services by way of admission to and/or organisation of event or celebrations etc. [Section 13(5)]

Nature of Supply Place of Supply

Services supplied by way of admission to or organisation of following: Place where the event is actually
Cultural, artistic, sporting, scientific, educational, entertainment held
events

Celebration, conference, fair, exhibition

Similar events
Services, ancillary to such admission or
organization of event
Para 7.9 PLACE OF SUPPLY
7.22
I fthe above services are supplicd at more than one location, including a | Location in the taxable territory
location in taxable territory
If the above services are supplied in more than one state/union Ierritory Each of State/Union Territory

Example 7.30:
An event management company held an exhibition for a renowned painter in the Delhi Art Gallery at Delhi.
Since theexhibition is held in Delhi the place of Supply shall be the location in Delhi.

Computation of value of services where immovable property is located in more than one State
and where the location of supplier or the recipient is outside India [New rule 8 of the IGST Rules
(effective from 01.01.2019)]
As per section 13(7) of the IGST Act, the place of supply of services supplied, in relation to an immov.
able property, in more than one State/UT is taken as being in cach such State/UT and the value of
such supplies is determined in terms of the contract or agreement entered into in this regard. Rule
8 of the IGST Rules lays down that in the absence of any such contract or agreement, the value is
determined by applying the provisions of rule 4 of the said rules, mutatis mutandis.
Computation of value of services where event is held in more than one State and where the location of
supplier or the recipient is outside India [New rule 9 of the IGST Rules (effective from 01.01.2019)
As per section 13(7) of the IGST Act, the place of supply of services supplied, by way of admission
to or organisation of an event in more than one State/UT is taken as being in each such State/UT
and the value of such supplies is determined in terms of the contract or agreement entered into in
this regard
Rule 9 of the IGST Rules lays down that in the absence of any such contract or agreement, the value
is determined by applying the provisions of rule 5 of the said rules, mnutatis mutandis.
4.Banking and financial services, intermediary services and Hiring of means of transport [Section
13(8)1
Type of Service
Place of Supply
Services supplied by a banking company, or a financial
institution, or a non-bank- | Location of the
ing financial company, to account holders supplier|
of services
Intermediary services
Services consisting of hiring of means oif
transport, including yachts but excluding
aircrafts and vessels, up to a period of I month

Example 7.31:
Xa Russian resident used his international debit card to
withdraw money from an ATM of A bank in Vrin-
davan (U.P.) while his visit to India. The place of
supply will be Vrindavan.
Example 7.32:
A. a registered travel agent in New- Delhi
arranges a tour for a visitor trom UK for
places in India. The place of supply will be the place of travel agent i.e. New Delhi. visiting various tourist
5. Transportation services [Section 13(9), Section 13(10) and Section 13(11)1
Nature of Supply
Place of Supply
1. Transportation of gods, other than by way of mail | Destination of such goods
or courier

2. Passenger transportation services Place where the

passenger embarks on the con
veyance tor a continuous journey
7.23
TEST YOUR KNOWLEDGE

Nature of Supply
3. Services provided on board a Place of Supply
conveyance during
senger transportation
be wholly or including services intendedpas-
to
First scheduled point of departure of
d Con
substantially consumed while on board veyance for the journey
Example 7.33:
A shipment of
specially made decorative pieces was
was managed
by the leading shipped to Rome for a mega event held there. The event
i.e. the place where management company registered in
they are destined. Rome. The place of supply will be Kome
6. Online information and
database access or retrieval
services (OIDAR)
The place of supply of OlDAR is
the location of the
[Section 13(12)]
It is difficult to recipient services.
of
determine the location of the
access the services online recipient in case of OIDAR. As the recipients
and not required to disclose
their normally
Seven conditions
locations.
arelaid down u/s 13(12) if
are satisfied then, any two non-contradictory conditions out
the service
recipient deemed to be located in the taxable
is of the seven
The Seven conditions are: territory i.e. India.
(a) the recipient gives an Indian address
through internet;
b)the payment is settled by an Indian credit card/debit
(c) the recipient has an Indian
card/other card;
billing address;
(d) the computer used by the recipient has an Indian IP
address;
(e) the recipient uses an Indian bank account for
payment;
)the country code of the subscriber
identity module card used
of India; by the recipient of services is

(g) the recipient receives the service through an Indian fixed land line.

Example 7.34:
The example of OIDAR includes Online
Online Gaming e.g. Zapak.com,
advertisinge.g. google, e-books, online data information e.g. Linkedln, |
online supply of Digital content eg. You'Tube.
TEST YOUR KNOWLEDGE
01. Why is the determination of place of supply important under the GST Laws?
02. How is the location of supplier of services determined?
03. Discuss the provisions for deternmination of place of
supply of goods in the domestic transactions under
general provisions.
04. List down the transactions when place of supply in domestic transactions
is determined under
provisions. specifie
Q.5. How the location of and supplier of Services is delined for the
recipient
of purchase of determining place
supply in case of domestic transactions? Also State the general
provisions for
Services: place of supply of
(i) When the recipient is registered person.
(i) When the recipient is unregistered person [DU B.Com.(Hons.) May 2019]
06. Write short notes on:
(a) B2B transactions
 PLACE OF SUPPLY
1.24
(b) Eporter of services
(c)Place ol supply in Banking Services.
Q7. Dctemue the place of
supply in following cases:
() Z.of UK exported goods to X of Chennai
(ii) B of Delhi enjoyed dinner at a hotel in
Agra
iii) C of lndia
exported services to M of United Kingdom
) A of Pune supplied service to B of Punjab and B is not a registered person. A does not have B
address on records.
() X supplied services to Y of Sri Lanka.

Ans.: (1) Chennai, (ii) Agra (ii) United Kingdom (iv) Pune (v) Sri Lankal
Q8. Determine the place of supply in the following cases:
(1) Organisation of an event
(2) Transportation of goods, including mails
(3) Advertisement services to Government
(4) Mobile connection.
09. In each of the following cases of domestic and cross border transactions of Goods and services identify
the place of Supply:
1. X of Delhi installed a weigh bridge at the site of recipient in Karnataka.
2. A businessman sold his old Car lying in his home town his business partner
Agra to at Agra.
There is no movement of car.
3. An elevator is installed by M of Delhi in Chennai.
4. Goods are imported by Suman of Jaipur from USA.
5. A Restaurant provides catering service at the premise of customer in Nagpur. The Caterer is
from Hyderabad.
6. Z conducts training of employees of C Ltd. which is a registered company in Rajasthan. The
training was conducted in Kolkata.
7. An unregistered firm sent it employees to Delhi for 3 days training. The trainers prevail from
Mumbai.
8. A boarded a Train from Kota. The tickets were booked in Delhi.
9. Mr. X of Telangana does not have a bank account and takes a Demand draft in Kerala from
ABC Bank.
10. A shipping company in Vizag charges freight from customer in
goods to China.
a
Uttar-pradesh for exporting
11. An architect designs a house in Agra. He belongs to London.
12. A Bengaluru based company repairs the sotware related computer problem for its client in
Kolkata online by sitting in Bengaluru itself.
13. A Chartered Accountant in Rohtak provides services to his client in Delhi.
14. Z provides interior decoration to the house of Mr. Y in Surat. Mr. Y lives in Delhi, while Z ives
In Ahmedabad.
15. Samarth a Lawyer provides services to his client in Jaipur. For the purpose he travels to Jaipur
and stays in a hotel there. The lawyer is registered in Delhi.
Ans.: (1) Karnataka (2) Agra (3) Chennai (4) Jaipur (5) Nagpur (6) Rajasthan (7) Delhi (8) Kota (9)
Kerala (10) China (11) Agra (12) Kolkata (13) Delhi (14) Surat (15) Jaipur|