Video Presentation on Supply, Time of Supply & Place of Supply of Goods and/or Services under GST
By: – Bimal jain
Goods and Services Tax – GST
Dated:- 26-10-2016
Dear Professional Colleague,
Video Presentation on Supply, Time of Supply & Place of Supply of Goods and/or Services under GST
Goods and Services Tax (“GST”) is a destination based consumption tax levied at multiple stages of production and distribution of goods and services, with taxes on inputs credited against taxes on output. GST is going to be big game changer and under proposed GST regime, all the major taxes levied under the indirect taxation i.e. Central Excise, Service tax, VAT/CST etc., would be brought under the ambit of GST. Hence, the prevailing concepts of manufacturing of goods/ provision of services/ sale of goods would no longer be relevant as tax would be levied on 'supply' of goods and/or services and common base has to be arrived at for levy & collection of GST in all cases.
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pter-IV of Model CGST/SGST Act, 2016 (“Model CGST/SGST Act”), applicable to levy of IGST vide Section 27 of Chapter-IX of the ModeI IGST Act, 2016 (“ModeI IGST Act”).
I: Time of supply of goods
* For normal supply: CGST/SGST and IGST on the goods shall be payable at the earliest of the following dates on which:
* Goods are removed for supply to the recipient (for goods required to be removed);
Goods are made available to the recipient (for goods not required to be removed);
Invoice is issued by supplier;
Payment is received by supplier;
Recipient shows receipt of goods in his books of account.
For continuous supply of goods:
Situation
Time of supply
Successive statements of accounts or successive payments are involved
Date of expiry of the period to which such successive statements of accounts or successive payments relate
No successive statements of account
Date of issue of invoice (or any other document)
or
Date of receipt of payment
Whichever is earlier
Fo
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he supplier
Where due date of payment is not ascertainable from the contract
Each such time when the supplier of service-
Receives the payment
or
Issues an invoice
Whichever is earlier
Where the payment is linked to the completion of an event
Time of completion of that event
Supply of services under reverse charge: Time of supply shall be determined in same manner as in case of goods discussed supra.
Understanding Place of supply of goods and/ or services
At first place, the importance of determination of place of supply, lies in identification of nature of supply as 'Inter-State' or 'Intra-State', based on which CGST & SGST/ IGST would be applicable. Similarly, principles of place of supply hold importance for determining imports and exports of goods and/or services, for which one of the condition is that place of supply should be in India (for imports) and out of India (for exports).
Principles for determining place of supply of goods:
Section 5 of the Model IGST
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ce of supply of services are different for B2B and B2C Supplies for certain specified services
The principles of place of supply for services are tabulated hereinbelow for ease understanding:
S. No.
Services
Place of supply of services
1
General Rule
B2B supplies: location of recipient
B2C supplies: location of recipient where address on record exists,
If not, then the location of supplier of services
Specific Rules for identified situations & different treatment for certain B2B and B2C of specified services
1.
Immovable property related services
Location of immovable property
Where property / vessel located in more than one state- proportionate allocation amongst states as per the contract or on reasonable basis
2
Performance based services
Place of actual performance > Specific services covered such as supply of restaurant and catering services, health service etc.- place of performance
Services in relation to training and performance appraisal-
B2B supply: locati
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elecommunication services including data transfer, broadcasting, cable and DTH services, Banking and other financial services, Insurance services, Advertisement services to the Central Government, a State Government, a statutory body or a local authority.
Apparently, there are numerous parameters given under the Model GST Law, for determining 'time of supply' and 'place of supply' for goods &services, which may be a major challenge initially for successful transition.
Watch the video to understand the intricacies of taxable event i.e. Supply under GST along with principles of time of supply and place of supply of goods and/or services.
With the intention of throwing light on key areas under the principles of time of supply and place of supply of goods and/or services under GST, and the related areas to be worked upon under the Draft Model GST Laws – CGST, SGST and IGST, this video presentation made by Mr. Bimal Jain on “Supply, Time of Supply(POT) and Place of Supply for Goods and S
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