Place of Supply CA Shailesh Bapat

Background Determine place of consumption of good/services Type of tax payable CGST & SGST/UTGST or IGST Apportionment of tax and settlement of funds Avoid disputes between two States / State and UT Background

Apportionment of tax & settlement of funds IGST: Eligible credit to recipient Not eligible credit to recipient (includes URD/Composition tax payer) Used for CGST Used for SGST Equivalent of Central tax to Center Transferred to Center Transferred to State Balance to State/UT where PoS is located Balance to each State/UT if PoS cannot not be determined (based on specified formula)

Refund of wrong tax paid Section 77 CGST Act IGST applicable CGST & SGST/UTGST wrongly paid Claim refund of wrong tax paid Pay right tax CGST & SGST/UTGST applicable IGST paid Waiver from Interest Section 19 IGST Act CGST & SGST/UTGST applicable IGST wrongly paid Claim refund of wrong tax paid Pay right tax IGST applicable CGST & SGST/UTGST paid Waiver from Interest

Overview Section 7 – Inter-state supply Section 8 – Intra-state supply Section 9 – Supply in “territorial waters” Section 10 – PoS “goods” (domestic) Section 11 – Import / Export of “goods” Section 12 – PoS “services” (domestic) Section 13 – PoS “services” (cross-border) Overview

Goods vs services “services” treated as “services” “Goods” treated as “goods” “Goods” treated as “services” Schedule II entries: Supply of food or drink for human consumption Works contract - renting of immovable property Transfer of right to use goods - construction of complex

Inter-state supply – Section 7 State / UT - A State / UT - B IGST Location of supplier Place of supply Creation of law Facts + Law

Intra-state supply – section 8 State / UT CGST & SGST/UTGST Location of supplier Place of supply

Inter-state supply – section 7 Deemed to be inter-state supply Import of goods Import of services Supplier in India & place of supply outside India Supply to / by SEZ Developer / Unit Not being an intra-state supply & not covered elsewhere Supply of goods made to a tourist (section 15) Inter-state supply – section 7

Import / Export of goods – section 11 Import of goods = location of the importer 1 Export of goods = location outside India 2 Bringing goods into India from a place outside India Taking goods out of India to a place outside India

Import of service – Sec 2(11) IGST Act Supplier located outside India Recipient located in India Place of supply is in India Recipient liable to pay tax under RCM – Notification number 10/2017 Integrated Tax (Rate) sr. no. 1 Import of service – Sec 2(11) IGST Act

Export of service – Sec 2(6) IGST Act Supplier located in India Recipient located outside India Place of supply is outside India Payment received in convertible foreign exchange Supplier & recipient are not deemed distinct persons

Establishment$ of ABC Pvt Ltd Establishment $ of ABC Pvt Ltd Distinct persons Outside India State / UT B Establishment$ of ABC Pvt Ltd Distinct persons Establishment $ of ABC Pvt Ltd India State / UT A $ Establishment = branch / agency / representational office

Location of supplier Location of supplier of goods not defined in the law Location of supplier of service: GST registered place Fixed establishment (place characterised by sufficient degree of permanence and suitable structure in terms of human and technical resources) Location of establishment most directly concerned with the provision of supply Usual place of residence of supplier

Place of supply of goods – section 10 Delivery address Principal PoB of recipient Place of supply: Location of goods Place of installation or assembly Location at which goods are taken on board

Place of supply of goods – section 10 (1)(a) where the supply involves movement of goods, whether by the supplier or the recipient or by any other person, the place of supply of such goods shall be: the location of the goods at the time at which the movement of goods terminates for delivery to the recipient

Place of supply of goods – section 10 (1)(b) 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;

Place of supply of goods – section 10 (1)(c) 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

Place of supply of goods – section 10 (1)(d) where the goods are assembled or installed at site, the place of supply shall be the place of such installation or assembly

“composite supply” means … consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply; Composite supply

Place of supply of goods – section 10 (1)(e) where the goods are supplied on board a conveyance, including 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

Place of supply of services – section 12 & 13 Location recipient Location of supplier Location of immovable property Location of actual performance Location where event is held Location where goods are handed over for transportation Location of destination of goods Location where passenger embarks on the conveyance First scheduled point of departure of the conveyance Place of supply of services – section 12 & 13

Place of supply of services Section 12 (supplier & recipient in India) domestic services 14 sub-sections Section 13 (supplier or recipient outside India) cross border services 13 sub-sections Sub-section (2) is residuary entry Place of supply of services

PoS – Immovable Property (IP) Directly in relation to immovable property Lodging accommodation by a hotel etc. including a house boat or any other vessel Accommodation in IP for organising any specified function including services provided in relation to such function Location at which immovable property or boat or vessel is located If location outside India, PoS = location of recipient PoS – Immovable Property (IP)

Place of supply of service – section 12 Admission to specified events Place where event is held Training & performance appraisal Location of registered person Location where services are performed Restaurant and catering services, personal grooming, fitness, beauty treatment, health service including cosmetic and plastic surgery Place of supply of service – section 12

Place of supply of service – section 12 Organisation of specified events & ancilliary services , assigning sponsorship to events Location of registered person Place where event is held Location of recipient (if event held outside India) Transportation of goods including by mail or courier Location at which goods are handed for transportation Place of supply of service – section 12

Place of supply of service – section 12 Passenger transportation service Location of registered person Place where passenger embarks on the conveyance for a continuous journey Services on board a conveyance Location of first schedule point of departure of that conveyance Place of supply of service – section 12

Place of supply of service – section 12 Telecommunication service, lease circuit, cable or dish antenna services Place where device or cable is installed for receipt of services Mobile telecommunication and internet services Billing address (post-paid connection) Pre-paid connection for mobile, internet, D2H service Address of selling agent / re-seller / distributor Place where pre-payment is received or voucher sold In case of e-payment, location of recipient Address of recipient / location of supplier (in other cases) Place of supply of service – section 12

Place of supply of service – section 12 Banking and financial services, stock broking services Location of recipient Location of supplier (in other cases) Insurance services Location of registered person Location of recipient (in other cases) Place of supply of service – section 12

Place of supply of service – section 12 Residuary entry (sub-section 2) Location of registered person Location of recipient (where address on record exists) Location of supplier (in other cases)

Place of supply of service – section 13 Goods required to be made physically available by recipient to supplier (other than imports for repairs) Place of actual performance Services provided from a remote location by way of electronic means Location where goods are situated at the time of performance Supply to individual which requires physical presence of recipient for supply Place of supply of service – section 13

Place of supply of service – section 13 Admission to or organisation of specified events and ancillary services to admission or organisation Place where event is actually held If goods related services, immovable property related services, admission to or organisation of event related services supplied at more than one location including location in taxable territory PoS = location in taxable territory

Place of supply of service – section 13 Location of supplier Services of banking company, financial institution, NBFC to account holders Intermediary services Hiring of means of transport including yachts up to a period of one month, but excluding aircraft or vessel

Place of supply of service – section 13 Transportation of goods other than by way of mail or courier Place of destination of goods Passenger transportation services Place where passenger embarks on the conveyance for a continuous journey Services provided on board a conveyance First schedule point of departure of that conveyance OIDAR service Location of recipient Place of supply of service – section 13

Overview Location of supplier Goods / Service / Goods treated as service Deemed inter-state supply (Sec. 7) PoS Goods (Sec. 10) PoS Import / Export of Goods (Sec. 11) PoS Services (domestic services) (Sec. 12) PoS Services (cross border services) (Sec. 13)

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