Place of supply in revised IGST law

CHAPTER– IV of revised IGST law provide for the place of supply in detail. There are four section in this Chapter. Revised IGST Law also provide for the place of supply in case of import and export of goods and /or services. This is one of the most important provision of entire GST Law. In GST the nature of tax we need to pay will be decided by the nature of transaction. There will be two type of transactions, intra state supply and inter state supply. We will pay CGST/SGST or IGST based on the type of supply. 

1. Section 7: Place of supply of Goods other then import/and export
2. Section 8: Place of supply of goods imported into, or exported from India
3. Section 9: Place of supply of services where the location of supplier of service and the location of the recipient of service is in India
4. Section 10: Place of supply of services where the location of the supplier or the location of the recipient is outside India.
   

   Section 7 of IGST Act:  Place of supply of goods other than supply of goods imported into, or exported from India

   (1) The provisions of this section shall apply to determine the place of supply of goods other than supply of goods imported into, or exported from India.
   (2) Where the supply involves movement of goods, whether by the supplier or the recipient or by any other person, the place of supply of goods shall be the location of the goods at the time at which the movement of goods terminates for delivery to the recipient.
   (3) Where the goods are delivered by the supplier to a recipient or any other person, on the direction of a third person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to the goods or otherwise, it shall be deemed that the said third person has received the goods and the place of supply of such goods shall be the principal place of business of
   such person.
   (4) Where the supply does not involve movement of goods, whether by the supplier or the recipient, the place of supply shall be the location of such goods at the time of the delivery to the recipient.
   (5) Where the goods are assembled or installed at site, the place of supply shall be the place of such installation or assembly.
   (6) Where the goods are supplied on board a conveyance, such as a vessel, an aircraft, a train or a motor vehicle, the place of supply shall be the location at which such goods are taken on board.
   (7) Where the place of supply of goods cannot be determined in terms of subsection (2), (3), (4), (5) or (6), the same shall be determined in a manner prescribed by the Central Government on the recommendation of the Council. These provisions are almost similar to the earlier provisions.

    

   Section 8 of IGST Act:  Place of supply of goods imported into, or exported from India

   (1) The place of supply of goods imported into India shall be the location of the importer.
   (2) The place of supply of goods exported from India shall be the location outside India.

   Section 9 of IGST Act :  Place of supply of services where the location of supplier of service and the location of the recipient of service is in India

   (1) The provisions of this section shall apply to determine the place of supply of services where the location of supplier of service and the location of the recipient of service is in India.
   (2) The place of supply of services, except the services specified in subsections (4), (5), (6), (7), (8), (9), (10), (11), (12), (13), (14) and (15), made to a registered person shall be the location of such person.
   (3) The place of supply of services, except the services specified in subsections (4), (5), (6), (7), (8), (9), (10), (11), (12), (13), (14) and (15), made to any person other than a registered person shall be:
   (a) the location of the recipient where the address on record exists, and
   (b) the location of the supplier of services in other cases.
   (4) The place of supply of services, –
   (a) directly in relation to an immovable property, including services provided by architects, interior decorators, surveyors, engineers and other related experts 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, homestay, 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 referred to in clause (a), (b) and (c), shall be the location at which the immovable property or boat or vessel is located or intended to be located:
   PROVIDED that if the location of the immovable property or boat or vessel is located or intended to be located outside India, the place of supply shall be the location of the recipient.
   Explanation: 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.
   (5) The place of supply of restaurant and catering services, personal grooming, fitness, beauty treatment, health service including cosmetic and plastic surgery shall be the location where the services are actually performed.
   (6) The place of supply of services in relation to training and performance appraisal to
   (a) a registered person, shall be the location of such person;
   (b) a person other than a registered person, shall be the location where the services are actually performed.
   (7) The place of supply of services provided by way of admission to a cultural, artistic, sporting, scientific, educational, or entertainment event or amusement park or any other place and services ancillary thereto, shall be the place where the event is actually held or where the park or such other place is located.
   (8) The place of supply of services provided by way of—
   (a) organization of a cultural, artistic, sporting, scientific, educational or entertainment event including supply of service in relation to a conference, fair, exhibition, celebration or similar events, or
   (b) services ancillary to organization of any of the above events or services, or assigning of sponsorship of any of the above events,to
   (i) a registered person, shall be the location of such person;
   (ii) a person other than a registered person, shall be the place where the event is actually held:
   PROVIDED that if the event is held outside India, the place of supply shall be the location of the recipient.
   Explanation: 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.
   (9) The place of supply of services by way of transportation of goods, including by mail or courier to,
   (a) a registered person, shall be the location of such person;
   (b) a person other than a registered person, shall be the location at which such goods are handed over for their transportation.
   (10) The place of supply of passenger transportation service to
   (a) a registered person, shall be the location of such person;
   (b) a person other than a registered person, shall be the place where the passenger embarks on the conveyance for a continuous journey:
   PROVIDED that 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.
   Explanation: For the purposes of this sub-section, the return journey shall be treated as a separate journey even if the right to passage for onward and return journey is issued at the same time.
   (11) The place of supply of services on board a conveyance such as vessel, aircraft, train or motor vehicle, shall be the location of the first scheduled point of departure of that conveyance for the journey.
   (12) The place of supply of telecommunication services including data transfer, broadcasting, cable and direct to home television services to any person shall—
   (a) in case of services by way of fixed telecommunication line, leased circuits, internet leased circuit, cable or dish antenna, be the location where the telecommunication line, leased circuit or cable connection or dish antenna is installed for receipt of services;
   (b) in case of mobile connection for telecommunication and internet services provided on post-paid basis, be the location of billing address of the recipient of services on record of the supplier of
   services;
   (c) in cases where mobile connection for telecommunication, internet service and direct to home television services are provided on prepayment through a voucher or any other means,
   (i) through selling agent or a re-seller or a distributor of SIM card or re-charge voucher, shall be address of the selling agent or re-seller or distributor as per the record of the supplier at the time of supply; or
   (ii) by any person to the final subscriber shall be the location where such pre-payment is received or such vouchers are sold;
   (d) in other cases not covered in (b) and (c) above, shall be the address of the recipient as per records of the supplier of the service:

   PROVIDED that where address of the recipient as per records of the supplier of service is not available, the place of supply shall be location of the supplier of service:
   PROVIDED FURTHER that if such pre-paid service is availed or the recharge is made through internet banking or other electronic mode of payment, the location of the recipient of services on record of the supplier of services shall be the place of supply of such service.
   Explanation: Where the leased circuit is installed in more than one State and a consolidated amount is charged for supply of services relating to such circuit, the place of supply of such services shall be taken as being in 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.
   (13) The place of supply of banking and other financial services including stock broking services to any person shall be the location of the recipient of services on the records of the supplier of services:
   PROVIDED that if the location of the recipient of services is not on the records of the supplier, the place of supply shall be location of the supplier of services.
   (14) The place of supply of insurance services shall:
   (a) to a registered person, be the location of such person;
   (b) to a person other than a registered person, be the location of the recipient of services on the records of the supplier of services.
   (15) The place of supply of advertisement services to the Central Government,a State Government, a statutory body or a local authority meant for identifiable States, shall be taken as located in each of such States and the value of such supplies specific to each State shall be in proportion to amount attributable to service provided by way of dissemination in the respective States as may be 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.

   Section 10 of IGST Act:  Place of supply of services where the location of the supplier or the location of the recipient is outside India

   (1) The provisions of this section shall apply to determine the place of supply of services where the location of the supplier of service or the location of the recipient of service is outside India.
   (2) The place of supply of services except the services specified in subsections (3), (4), (5), (6), (7), (8), (9), (10), (11), (12) and (13) shall be the location of the recipient of service:
   PROVIDED that in case the location of the recipient of service is not available in the ordinary course of business, the place of supply shall be the location of the supplier of service.
   (3) The place of supply of the following services shall be the location where the services are actually performed, namely:-
   (a) services supplied in respect of goods that are required to be made physically available by the recipient of service to the supplier of service, or to a person acting on behalf of the supplier of service in order to provide the service:
   PROVIDED that when such services are provided from a remote location by way of electronic means, the place of supply shall be the location where goods are situated at the time of supply of service:
   PROVIDED FURTHER that this clause shall not apply in the case of a service supplied in respect of goods that are temporarily imported into India for repairs and are exported after repairs without being put to any use in India, other than that which is required for such repairs;
   (b) services supplied to an individual, represented either as the recipient of service or a person acting on behalf of the recipient, which require the physical presence of the receiver or the person acting on behalf of the recipient, with the supplier for the supply of the service.
   (4) The place of supply of services supplied directly in relation to an immovable property, including services supplied in this regard by experts and estate agents, supply of hotel accommodation by a hotel, inn, guest house, club or campsite, by whatever name called, grant of rights to use immovable property, services for carrying out or co-ordination of construction work, including architects or interior decorators, shall be the place where the immovable property is located or intended to be located.
   (5) The place of supply of services supplied by way of admission to, or organization of, a cultural, artistic, sporting, scientific, educational, or entertainment event, or a celebration, conference, fair, exhibition, or similar events, and of services ancillary to such admission, shall be the place where the event is actually held.
   (6) Where any service referred to in sub-sections (3), (4), or (5) is supplied at more than one location, including a location in the taxable territory, its place of supply shall be the location in the taxable territory where the greatest proportion of the service is provided.
   (7) Where the services referred to in sub-sections (3), (4), (5) or (6) are supplied in more than one State, the place of supply of such services shall be taken as being in 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.
   (8) The place of supply of following services shall be the location of the supplier of service:-
   (a) services supplied by a banking company, or a financial institution, or a non-banking financial company, to account holders;
   (b) intermediary services;
   (c) services consisting of hiring of means of transport other than aircrafts and vessels except yachts, upto a period of one month.
   Explanation.- For the purpose of this section, the expression “goods” shall include ‘securities’ as defined in sub-section (90) of section 2 of the CGST Act, 2016.
   (9) The place of supply of services of transportation of goods, other than by way of mail or courier, shall be the place of destination of the goods.
   (10) The place of supply in respect of a passenger transportation service shall be the place where the passenger embarks on the conveyance for a continuous journey.
   (11) Place of supply of services provided on board a conveyance during the course of a passenger transport operation, including services intended to be wholly or substantially consumed while on board, shall be the first scheduled point of departure of that conveyance for the journey.
   (12) (a) The place of supply of the “online information and database access or retrieval services” services shall be location of recipient of service.

   (b) For the purposes of this sub-section, person receiving such services shall be deemed to be located in the taxable territory if any two of the following non-contradictory conditions are satisfied, namely:-
   (i) the location of address presented by the recipient of service via internet is in taxable territory;
   (ii) the credit card or debit card or store value card or charge card or smart card or any other card by which the recipient of service settles payment has been issued in the taxable territory;
   (iii) the billing address of recipient of service is in the taxable territory;
   (iv) the internet protocol address of the device used by the recipient of service is in the taxable territory;
   (v) the bank of recipient of service in which the account used for payment is maintained is in the taxable territory;
   (vi) the country code of the subscriber identity module (SIM) card used by the recipient of service is of taxable territory;
   (vii) the location of the fixed land line through which the service is received by the recipient is in taxable territory.
   (13) In order to prevent double taxation or non-taxation of the supply of a service, or for the uniform application of rules, the Central Government shall have the power to notify any description of service or circumstances in which the place of supply shall be the place of effective use and enjoyment of a service.