Supply and Place of Supply of Goods and Services in IGST Law
By: – Sanjeev Singhal
Goods and Services Tax – GST
Dated:- 20-1-2017
Supply is wider term used in GST law as the GST is based on Supply only. Now the question arises what is supply. Supply is transfer of goods and services on which GST will be imposed. Supply has been mainly defined in Section 3 of GST law subject to Schedule- I to IV. Supply has been further elaborated in IGST law whether the supply is interstate supply or Intra-State supply. This is important because if the supply is Intra- State,then CGST and SGST will be attracted otherwise if the supplly is Inter State then IGST will be levied. To understand whether the transaction is Inter State or Intra-State or Import or Export, it is important to understand the provision of Place of Supply which has been narrated in Section- 3 to 4 and 7 to 10 of the IGST Law.
Supply has been defined in Section 2[26] of IGST Law as follows;
“Supply” shall have the
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of goods brought into India in the course of import till they cross the custom frontier of India.
* Intra State supply of services means any supply of services where the location of supplier and place of supply is in the same State but does not include supply to or by SEZ Developer or SEZ unit.
Place of Supply of Goods other than import and export [ Section-7 ]
Situation
Place of Supply
1.Movement of goods by supplier or recipient.
Where the movement of goods terminate for delivery to recipient.
2. where the goods are delivered to recipient or any person on the direction of third person by way of transfer of title or otherwise, it shall be deemed that third person has received the goods
shall be principal place of business of such person
3. where there is no movement of goods either by supplier or recipient
Location of such goods at the time of delivery to recipient
4. where goods are assembled or installed at site
Shall be where the goods are assembled or installed
5
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engineers, estate agent, grant of right to use immovable property for carrying out or co-ordination of construction work
b] lodging accommodation by hotel, inn, guest house, home stay, club or campsite, house boat or other vessel
c] accommodation in immovable property for marriage or reception or matter related therewith , official, social , cultural , religious or business function including service for such functions.
d] ancillary to above services in a, b and c
Location of Immovable property, boat or vessel
If immovable property, boat or vessel is located outside India then location of the recipient.
If the services are provided in more than one State, proportion of service provided in each State.
4. restaurant and catering service, personal grooming , fitness, beauty treatment, health services including cosmetic and plastic surgery
Where the services are actually performed
5. training and performance appraisal
Location of registered person.
Location where the service are
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Return journey shall be treated as separate journey
10. services on board a conveyance such as vessel, aircraft, train or motor vehicle
First schedule departure point of the conveyance
11.telecommunication including data transfer, broadcasting, cable and DTH television services
a] fixed line, leased circuit , internet lease circuit, cable or dish antenna-
b] Mobile connection for telecommunication, internet on post paid basis-
c] Mobile connection for telecommunication, internet and DTH on prepaid basis-
i] through selling agent or reseller or distributor of SIM or recharge voucher
ii] by any person to the final subscriber
d] any other case other than b and c above
Where it is installed
Billing Address
Address of seller , reseller or distributor as per the record of supplier
Where prepayment is received or voucher is sold
Address of recipient as per the record of supplier
Where the address of the recipient is not known , location of supplier.
If prepaid service or rec
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rvices to the supplier of services
Where services are provided from remote location by way of electronic means
b] service supplied to individual , represented either as recipient of service or person acting on behalf of recipient which required the physical presence of receiver.
Location where the services are performed.
Location where the Goods are situated.
This clause shall not apply in services supplied in respect of goods temporarily imported in to India and are exported after repair.
Location where the service are performed
3. services in relation to immovable property including services in this regard by expert and estate agent, supply of hotel accommodation by hotel, inn, guest house, home stay, club or campsite, grant of right to use immovable property, services for carrying out or coordination of construction work, including Architect or interior decorator.
Location of Immovable property.
4. admission to or organizing of a cultural, artistic, sporting ,scientific, e
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ircraft, train or motor vehicle
First schedule departure point of the conveyance
11.a] service of ” online information and Database access or retrieval ”
b] for the purpose of this sub section, person receiving such services shall be deemed to be located in taxable territory, if following two condition are being satisfy
i]location of address presented by the recipient via internet
ii] payment settle by recipient by any card has been issued in taxable territory
iii]billing address of recipient of service is in taxable territory
iv] internet address protocol of the device used by recipient is in taxable territory
v] the bank of recipient of service is in taxable territory
vi] country code of SIM used by recipient of service is in taxable territory
vii]location of the fixed land line use by recipient is in taxable territory
Location of recipient of services
Disclaimer :
The contents of this article are solely for information and knowledge and does not constitute any profes
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e service is provided. And supply of service made to any other person other than registered person shall be
* The location of the recipient where the address on record exist and
* The location of the supplier of services in other cases.
Question 1. If the advertiser is located in other state and not registered in Maharashtra which tax will be applicable (a) IGST or (b) SGST & CGST
2. We organise exhibitions in different states. Currently we have centralised registration of Services tax having principle place of business in Mumbai.
Question 1. If the Exhibition is organised in Mumbai where we will be registered under GST, Exhibitors participating from other states which are not registered in Maharashtra, which Tax will be applicable (a) IGST or (b) SGST & CGST.
2.If we organise an Exhibition in other state where we have branch office. Do we need to take registration in that state?
3. If we organise an Exhibition in other state where we do not have branch office – Do we need t
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