GST – GST FAQ 3rd Edition – December, 2018 – 22 – 22. Place of Supply of Goods and Service Q 1. What is the need for the Place of Supply of Goods and Services under GST? Ans. The basic principle of GST is that it should effectively tax the consumption 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 supply determines whether a transaction is intra-state or interstate. In other words, the place of Supply of Goods or services is required to determine whether a supply is subject to SGST plus CGST in a given State or union territory or else would attract IGST if it is an inter-state sup
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
receiver and the service provided may not be ascertainable or may easily be suppressed as nothing tangible moves and there would hardly be a trail; (iii) For supplying a service, a fixed location of service provider is not mandatory and even the service recipient may receive service while on the move. The location of billing could be changed overnight; (iv) Sometime the same element may flow to more than one location, for example, construction or other services in respect of a railway line, a national highway or a bridge on a river which originate in one state and end in the other state. Similarly, a copy right for distribution and exhibition of film could be assigned for many states in single transaction or an advertisement or a programme
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ns. The various element involved in a transaction in services can be used as proxies to determine the place of supply. An assumption or proxy which gives more appropriate result than others for determining the place of supply, could be used for determining the place of supply. The same are discussed below: (a) location of service provider; (b) the location of service receiver; (c) the place where the activity takes place/ place of performance; (d) the place where it is consumed; and (e) the place/person to which actual benefit flows Q 4. What is the need to have separate rules for place of supply in respect of B2B (supplies to registered persons) and B2C (supplies to unregistered persons) transactions? Ans. In respect of B2B transactions, t
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =