Place of Supply of Goods and

Services

BY: NIKHIL
KUMAR(05814901718)
Why Place of Supply is Important Factor in GST

Place of Supply is an important factor under

GST because: -

1. On the basis of place of supply we can

ascertain whether it is Intra- state or Inter-
state supply. .

2. This in turn shall help us in ascertaining,

whether CGST + SGST is payable on such
supply or IGST is payable.
 Inter -State Supply
How can a supply be identified as Inter-state?
A supply of goods / service shall be considered as an Inter-state supply when:
 The location of the supplier* and the place of supply* are in––
 two different States;
 two different Union territories; or
 a State and a Union territory

 Supply of goods/ service imported into the territory of India, till they cross the customs frontiers of
India,

 Supply of goods or services or both: –

 when the supplier is located in India and the place of supply is outside India;
 to or by a Special Economic Zone developer or a Special Economic Zone unit; or
 in the taxable territory, not being an intra-State supply and not covered elsewhere in this section.
 Intra -State Supply
How can a supply be identified as Intra-state?
Supply of goods/ services where the location of the supplier* and the place of supply* of goods are in the
same State or same Union territory shall be treated as intra-State supply. Following supply of goods shall
NOT be treated as intra-State supply,
 Supply of goods to or by a Special Economic Zone developer or a Special Economic Zone unit;
 Goods imported into the territory of India till they cross the customs frontiers of India; or
 Supplies made to a tourist.
Note:
1. Where a person has
a. an establishment in India and any other establishment outside India;
b. an establishment in a State/ UT and any other establishment outside that State / UT; or
c. an establishment in a State/ UT and any other establishment being a business vertical registered within
that State/ UT,
Then such establishments shall be treated as establishments of distinct persons.
2. A person carrying on a business through a branch or an agency or a representational office in any
territory shall be treated as having an establishment in that territory.
 Location of Supplier
Location of Supplier of SERVICE means: -
 Where a supply is made from a place of business for which the registration has been obtained, the
location of such place of business;
 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;
 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
 In absence of such places, the location of the usual place of residence of the supplier
Principal Place of Business means :-
 The place of business specified as the principal place of business in the certificate of registration;
Fixed Establishment means :-
 a place (other than the registered place of business) which is characterized by a sufficient degree of
permanence and suitable structure in terms of human and technical resources to supply services, or to
receive and use services for its own needs;
 PLACE OF SUPPLY
The place of supply shall be determined for goods and services separately under
the following Sections:
Type of Supply Case Section of IGST
Act
Domestic Supply Supply of goods other than those imported Section 10
into or exported from India
Cross-Border Supply Supply of goods imported into or exported Section 11
from India
Domestic Supply Supply of services where location of both Section 12
supplier and recipient is in India
Cross-Border Supply Supply of services where location of any one Section 13
of the supplier or the recipient is not in India