Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 27-7-2016 – Determination of place of supply of services is important for goods and Service Tax. Section 3 and 3A of IGST Act lay down principles for determining supply of goods and/ or services in the course of inter-state and intra-state trade or commerce. There provisions are subject to section 6 on place of supply of services. Two terms are important for determination of place of supply of services viz, 'service' and 'supply'. 'Service' in terms of section 2(88) of GST Act means anything other than goods. 'Supply' is defined in section 3 of the CGST Act, 2016. As discussed earlier in Part 2 of this series of articles, 'supply' includes- All forms of supply of goods and / or services Importation of services Supplies specified in Schedule-I (without consideration) Matters to be treated as supply of services as per Schedule-II Under the present law, Place of Provision of Services
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28/2012-ST, dated 20-6-2012 w.e.f. 1-7-2012. Such rules shall determine the place of provision of services for levy of service tax. Such rules shall determine Place where services are provided – Place where services are deemed to have been provided, or – Place where services are agreed to be provided, or – Place where services are deemed to have been agreed to be provided The place of provision of service rules will determine the place where the services shall be deemed to be provided. It s taxability will be determined based on the location of its provision. Place of Supply for IGST Section 6 deals with determination of place of supply of services. This contain 13 sub-sections and stipulates different situations in which place of supply of services shall be ascertained. In case of B2B (business to business) supply of services, the primary factor for determining the place of supply will be the location of the service recipient, subject to certain exceptions. As per sub-section (3), ge
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ply of services shall be determined in terms of section (6). Registered / unregistered person Unlike the present place of provision of service norms, place of supply of services for IGST shall be determined on the basis of status of person who in recipient (i.e. whether he is registered or not. 'Registered person' is not defined either in CGST law or IGST law but taxable person has been defined. Going by the definition of taxable person in section 9 of the GST Act, it includes both, registered person and one who is required to be registered. So, we can assume that for place of supply, registered person is a taxable person who is registered u/s 19 and Schedule-III and other than registered person is a taxable person who is required to be registered but not so registered. General Rule As a general rule, the place of supply of service shall be determined as follows – Sub-section of section 6 Supply of service to Place of supply Except 2 Registered person Location of recipient (i.e
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or estate agents, any service provided by way of grant of rights to use immovable property or for carrying out or co-ordination of construction work, or (b) by way of lodging accommodation by a hotel, inn, guest house, home stay, club or campsite, by whatever name called and including a house boat or any other vessel, or (c) by way of accommodation in any immovable property for organizing any marriage or reception or matters related therewith, official, social, cultural, religious or business function including services provided in relation to such function at such property, or (d) any services ancillary to the services in clause (a), (b) and (c) above. (See note 1 below) Location at which the immovable property or boat or vessel is located or intended to be located. Location at which the immovable property or boat or vessel is located or intended to be located. (5) The place of supply of restaurant and catering services, personal grooming, fitness, beauty treatment, health service in
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of any of the above events or services, or assigning of sponsorship of any of the above events. (See Note to below 2) Location of such person. Place where the event is actually held. (9) The place of supply of services by way of transportation of goods, including by mail or courier Location of such person Location at which such goods are handed over for their transportation. (10) The place of supply of passenger transportation service [Where the right to passage is given for future use and the point of embarkation is not known at the time of issue of right to passage, the place of supply of such service shall be determined in the manner specified in sub-sections (2) or (3), as the case may be.] (See Note 3 below) Location of such person Place where the passenger embarks on the conveyance for a continuous journey. (11) The place of supply of services on board a conveyance such as vessel, aircraft, train or motor vehicle. Location of the first scheduled point of departure of that conveya
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alled for receipt of services. Location of billing address of the recipient of services on record of the supplier of services; Location where such pre-payment is received or such vouchers are sold: Location where the telecommunication line, leased circuit or cable connection or dish antenna is installed for receipt of services. Location of billing address of the recipient of services on record of the supplier of services; Location where such pre-payment is received or such vouchers are sold: (13) The place of supply of banking and other financial services including stock broking services to any person. If the service is not linked to the account of the recipient of services. Location of the recipient of services on the records of the supplier of services. Location of the supplier of services. Location of the recipient of services on the records of the supplier of services. Location of the supplier of services. (14) The place of supply of insurance services Location of such person Locat
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reasonable basis as may be prescribed in this behalf. Note 1 Where the immovable property or boat or vessel is located in more than one State, the supply of service shall be treated as made in each of the States in proportion to the value for services separately collected or determined, in terms of the contract or agreement entered into in this regard or, in the absence of such contract or agreement, on such other reasonable basis as may be prescribed in this behalf. Note 2 Where the event is held in more than one State and a consolidated amount is charged for supply of services relating to such event, the place of supply of such services shall be taken as being in the each of the States in proportion to the value of services so provided in each State as ascertained from the terms of the contract or agreement entered into in this regard or, in absence of such contract or agreement, on such other reasonable basis as may be prescribed in this behalf. Note 3 The return journey shall be tr
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