1. SUB-REGIONAL CONFERENCE ON GST
Organized by
RAJKOT BRANCH OF WIRC
PRESENTED BY
RAJIV LUTHIA
AN INVESTMENT IN KNOWLEDGE PAYS THE BEST RETURN
17th December, 2017
CA Rajiv Luthia

2. COVERAGE INTER & INTRA STATE SUPPLY PLACE OF SUPPLY & ISSUES
17th December, 2017
CA Rajiv Luthia

3. DEFINITION OF INTER & INTRA STATE SUPPLY and PRINCIPLES FOR DETERMINING SUPPLY
17th December, 2017
CA Rajiv Luthia

4. Place of supply
Section 2(86) of CGST Act …. “ Place of Supply” means place of supply as referred in Chapter V of IGST Act
Section 2(64) of CGST Act…. “Intra State supply of Goods” shall have meaning as assigned to in section 8 of IGST Act
Section 2(65) of CGST Act…. “Intra State supply of Service” shall have meaning as assigned to in section 8 of IGST Act”
CA Rajiv Luthia
17th December, 2017

5. Section 7 (1) & (2) - IGST - Supply of Goods in course of Inter State trade or commerce
Subject to the provisions of section 10, supply of goods, where the location of the supplier and the place of supply are in––
a) two different States;
(b) two different Union territories; or
(c) a State and a Union territory,
shall be treated as a supply of goods in the course of inter-State trade or commerce.
Supply of goods imported into the territory of India, till they cross the customs frontiers of India, shall be treated to be a supply of goods in the course of inter-State trade or commerce. (E.g.: High Sea Sales)
CA Rajiv Luthia
17th December, 2017

6. Definition of “INDIA” – Section 2(56)
LAND MASS
TERRITORIAL WATER ( 12 NM) including sea bed, sub soil under water
INDIA
Continental Shelf of India & Exclusive Economic Zone & other Maritime Zone
Air Space Above
17th December, 2017
CA Rajiv Luthia

7. Section 7 (3) & (4).. IGST - Supply of Service in course of Inter State trade or commerce
Subject to the provisions of section 12, supply of Service, where the location of the supplier and the place of supply are in––
a) two different States;
(b) two different Union territories; or
(c) a State and a Union territory,
shall be treated as a supply of service in the course of inter-State trade or commerce.
Supply of services imported into the territory of India shall be treated to be a supply of services in the course of inter-State trade or commerce.
CA Rajiv Luthia
17th December, 2017

8. Supply of goods or services or both,––
Section 7 (5) IGST - Supply of goods or service or both in course of inter-state trade or commerce
Supply of goods or services or both,––
(a) when the supplier is located in India and the place of supply is outside India;
(b) to or by a Special Economic Zone developer or a Special Economic Zone unit; or
(c) in the taxable territory, not being an intra-State supply and not covered elsewhere in this section,
shall be treated to be a supply of goods or services or both in the course of inter-State trade or commerce.
CA Rajiv Luthia
17th December, 2017

9. Provided following shall not be treated as intra-State supply,
Section 8(1) - Supply of goods in course of intra-state trade or commerce
Subject to the provisions of section 10, supply of goods where the location of the supplier and the place of supply of goods are in the same State or same Union territory shall be treated as intra-State supply
Provided following shall not be treated as intra-State supply,
(i) supply of goods to or by a Special Economic Zone developer or a Special Economic Zone unit;
(ii) goods imported into the territory of India till they cross the customs frontiers of India; or
(iii) supplies made to a tourist
CA Rajiv Luthia
17th December, 2017

10. Section 8(1) - Supply of goods in course of intra-state trade or commerce
Section 15 of IGST - “Tourist” means a person not normally resident in India, who enters India for a stay of not more than six months for legitimate non-immigrant purposes.
Foreign Tourist leaving India & carrying goods on his way back, which where purchased in India will be eligible for refund of IGST so paid…. Section 15 of IGST
CA Rajiv Luthia
17th December, 2017

11. Section 8(2) - Supply of Service in course of intra-state trade or commerce
Subject to the provisions of section 12, supply of services where the location of the supplier and the place of supply of services are in the same State or same Union territory shall be treated as “intra-State supply”
Provided that the intra-State supply of services shall not include supply of services to or by a developer of SEZ or a SEZ unit.
CA Rajiv Luthia
17th December, 2017

12. Section 9 – Supplies in Territorial Waters
Notwithstanding anything contained in this Act,––
(a) where the location of the supplier is in the territorial waters, the location of such supplier; or
(b) where the place of supply is in the territorial waters, the place of supply,
shall, for the purposes of this Act, be deemed to be in the coastal State or Union territory where the nearest point of the appropriate baseline is located.
E.G.: POS in Bombay High will be treated as supply in state of Maharashtra.
CA Rajiv Luthia
17th December, 2017

13. PLACE OF SUPPLY
17th December, 2017
CA Rajiv Luthia

14. PLACE OF SUPPLY PLACE OF SUPPLY GOODS SERVICE
Other than Imported or Exported Goods
Imported or Exported Goods
Location of Supplier & location of recipient is in India
Location of Supplier or location of recipient is outside India
Section 10 (IGST)
Section 11
(IGST)
Section 12
(IGST)
Section 13 (IGST)
17th December, 2017
CA Rajiv Luthia

15. POS of goods, other than Imported or exported goods
“POS” is location of goods at the time at which the movement of goods terminates for delivery to the recipient where supply involves movement of goods. [10(1)(a)]
ISSUE:
KALPESH LTD. of Rajkot places order to ANKIT LTD. of Mumbai for supply of goods on ex-factory basis. The transporter for delivery is arranged & paid by KALPESH LTD. Determine POS? Whether SGST+CGST to be levied or IGST on above transaction?
17th December, 2017
CA Rajiv Luthia

16. POS of goods, other than Imported or exported goods
This transaction is covered by section 10(1) (a) of IGST
The above sections uses the term “ movement of goods, whether by supplier or the recipient or any other person”
Here the intention of law is to levy IGST, since movement for delivery terminates in other state.
The onus is upon the supplier to prove that movement has terminated in other state.
Advisable to have following documents as evidence :
LR & DC stating Supplier as consignor
E-way Bill to be generated by supplier, when made applicable
DC  to be issued by Supplier stating that movement completes in other state.
INTER STATE SUPPLY……IGST
17th December, 2017
CA Rajiv Luthia

17. POS of goods, other than Imported or exported goods
Delivery of goods by supplier to recipient/any other person on direction of third person, before or during movement of goods, POS is principal place of business of such third person. [10(1)(b)]
ISSUE: ABC Ltd. of Delhi places order to XYZ Ltd. of Mumbai for supply of goods. The delivery to be given by supplier to Pawar Ltd. of Pune. Determine POS? Whether SGST+CGST to be levied or IGST on above transaction?
Supplier XYZ Ltd.-Mumbai
Agent/Principal Buyer (3rd Person) ABC Ltd. - Delhi
Recipient- PAWAR Ltd.- Pune
POS - Delhi
17th December, 2017
CA Rajiv Luthia

18. POS of goods, other than Imported or exported goods
POS is location of goods at the time of delivery to the recipient where supply does not involve movement of goods [10(1)(c)]…..E.g. Retail counter
Where goods are assembled/installed at site, POS is place of such installation/assemble [10(1)(d)].
E.g. - Assembly of plant, installation of lift etc.
In case of goods supplied on board a conveyance, POS is location at which such goods are taken on board. [10(1)(e)]
POS cannot be determined from above, CG shall prescribe the manner [10(2)]
CA Rajiv Luthia
17th December, 2017

19. Place of Supply of Goods (Domestic)1
when movement involved
Place where movement terminates for Delivery 2
Bill to ship to model
Person on whom bill is raised 3
When movement not involved
Location of Goods at time of delivery
Supply by way of assembly/installation
Place of Such assembly/Installation 4 5
Supply on board a conveyance
Place where goods are taken on board
17th December, 2017
CA Rajiv Luthia

20. Place of supply of Imported or Exported Goods.. Sec 11
Goods imported into India – POS shall be location of Importer
Goods Exported from India – POS shall be location outside India
CA Rajiv Luthia
17th December, 2017

21. Place of supply of Imported or Exported Goods
ISSUE:
MODI LTD. of Mumbai, a merchant exporter places for purchase of chemicals to CHANG LTD. of CHINA. The said Chemicals are directly sold to OBAMA LTD. of USA on terms of foreign to foreign shipments.
Whether the said Triangular purchase and Sale would be covered under GST regime?
If yes, would it be called Import and export under GST?
CA Rajiv Luthia
17th December, 2017

22. Place of supply of Imported or Exported Goods
Section 5(1) of IGST levies tax on all inter-state supplies of goods or services or both
Section 10(1)(a) of IGST, where the supply involves movement of goods, the Place of Supply of Goods is the location of goods at the time when movement of goods terminates for delivery to the recipient.
Section 7 (5) (a) of IGST, when supplier located in India and POS is outside India, such supply is treated as supply in the course of inter-state trade or commerce.
Conjoint reading…….In above transaction, since supplier located in India and POS is outside India, it is “inter-state supply”.
Section 16(1) of IGST covers “export of goods” within the meaning of “zero rated supply”.
Section 2(5) of IGST defines “export of goods” means taking goods out of India to a place outside India.
CA Rajiv Luthia
17th December, 2017

23. Place of supply of Imported or Exported Goods
“Taking goods out of India” ?????????
Goods must be physically present in India since one can take goods out of India only when the goods were first bought/were already present in India.
Transaction not qualify as “export of goods”. Hence not “zero rated supply”. IGST leviable by virtue of Section 5(1) read with Section 7(5)(a) of IGST ???.
Supply transaction is outside the territorial waters, hence outside the territorial jurisdiction of IGST ?????.... The Act extends to whole of India.
Section 5(1) of IGST, Tax is levied on goods imported into India at the point when duties of customs are levied on goods U/s.12 of the Customs Act,1962.
Section 2(10) of IGST defines “import of goods” means bringing goods into India from a place outside India.
In the instant case, since the goods are never bought to Indian territory, the purchase transaction is not liable to IGST.
CA Rajiv Luthia
17th December, 2017

24. Place of supply of services (section 12 (2) of IGST Act)
Applicable for determining POS, where location of supplier & recipient is in India
POS of services (other than specified services) -i.e. GENERAL RULE
REGISTERED PERSON
UNREGISTERED PERSON
LOCATION OF SUCH PERSON
LOCATION OF RECIPIENT WHERE ADDRESS ON RECORD EXIST
LOCATION OF SUPPLIER IN ANY OTHER CASE
Section 2(3) of CGST Act… “address on record” means the address of the recipient as available in the records of the supplier”
CA Rajiv Luthia
17th December, 2017

25. Place of supply of service
LOCATION OF RECIPIENT– Section 2(14) (IGST)
Where Supply is Received at Registered POB
Where Supply is Received at Place Other than POB for which registration is obtained
Where Supply is Received at More one than Establishment
In Absence of Such places
LOCATION OF SUCH POB
LOCATION OF SUCH “FE”
LOCATION OF ESTABLISHMNET MOST DIRECTLY CONCERN
USUAL PLACE OF RESIDENCE OF RECIPIENT
CA Rajiv Luthia
17th December, 2017

26. Place of supply of service
LOCATION OF SUPPLIER– Section 2(15) (IGST)
Where Supply is made from Registered POB
Where Supply is made from Other than POB
Where Supply is made from more than one Establishment
In Absence of Such places
LOCATION OF SUCH POB
LOCATION OF SUCH “FE”
LOCATION OF ESTABLISHMNET MOST DIRECTLY CONCERN
USUAL PLACE OF RESIDENCE OF SUPPLIER
CA Rajiv Luthia
17th December, 2017

27. Place of supply of services…Location of recipient
Section 2(113) of CGST - “Usual place of residence” means––
(a) in case of an individual, the place where he ordinarily resides;
(b) in other cases, the place where the person is incorporated or otherwise legally constituted
“Location of recipient of service” is also defined at Section 2(70) of CGST Act…(Defined twice verbatim)
“Location of Supplier of service” is also defined at Section 2(71) of CGST Act….(Defined twice verbatim)
CA Rajiv Luthia
17th December, 2017

28. Place of supply of services…Location of recipient
Section 2(50) ….. “fixed establishment” means a place (other than the registered POB) which is characterized by a sufficient degree of permanence and suitable structure in terms of human and technical resources to supply services, or to received and use services for its own needs…..Also defined 2(7) –IGST (Defined twice verbatim)
Section 2(89)…“principal place of business” means the place of business specified as the principal place of business in the certificate of registration
Section 2(85)… “place of business” includes
A place from where the business is ordinarily carried on, and includes a warehouse, a godown or any other place where a taxable person stores his goods, supplies or receives goods and/or services;
A place where a taxable person maintains his books of account;
A place where a taxable person is engaged in business through an agent, by whatever name called.
CA Rajiv Luthia
17th December, 2017

29. POS of Immovable property related services..12(3)
POS - LOCATION OF IMMOVABLE PROPERTY/BOAT/ VESSEL
Services directly in relation to immovable property, including services provided by
Lodging accommodation by a hotel, inn, guest house, homestay, club or campsite, including houseboat or any other vessel..?
Accommodation in immovable property for organizing marriage or reception or related matters, official, social, cultural, religious or business function including their related services
Architects
Interior Decorators
Surveyors
Engineers & other related Expert
Ancillary services to above services
Estate Agents
Grant of right to use Immovable Property
Carrying out or co-ordination of Construction Work
CA Rajiv Luthia
17th December, 2017

30. Place of supply of Immovable property related services
Where immovable property/boat/vessel is located in more than 1 state, supply is treated as made in each of the States/UT in proportion to the value of services collected or determined in term of contract or on other reasonable basis in absence of contract…..Can the immovable property be located in more than 1 State?..
E.g.- Accommodation given on Cruise
Location of Immovable property/boat/vessel is outside India or intended to be outside India , POS shall be location of recipient……
“X” Ltd – (Builder)
Mr. A
Mumbai
Delhi
Construction in Dubai
POS DELHI
CA Rajiv Luthia
17th December, 2017

31. POS Immovable property related services-ISSUE
NARESH SHETH LTD. is having ware house in Bhiwandi-Maharashtra. They render services of warehousing of goods to ABHISHEKH DOSHI LTD. Of Rajkot for storage of goods. Discuss POS?
Warehouse is immovable property
Is it service in relation to immovable property?
Covered under 12(2) or 12(3)?????
CA Rajiv Luthia
17th December, 2017

32. Place of supply of performance based services
POS is place of actual performance for following services [12(4)]
Restaurant (??????) & catering services;
Personal grooming
Fitness
Beauty treatment
Health service including cosmetic and plastic surgery
Home delivery
“X” Ltd (Caterer/ Hotel)
Mr. A
Maharashtra
Gujarat
POS GUJARAT
CA Rajiv Luthia
17th December, 2017

33. Place of supply of performance based services -ISSUE
NALINI YASMIN of Mumbai has rendered beauty treatment service to star cast of MOTION PICTURES PVT LTD. also of MUMBAI at their shooting location at OOTY.
Discuss POS?
SP & SR both located at Mumbai-Maharashtra
Place of Performance is POS
POS is Tamilnadu……. IGST
CA Rajiv Luthia
17th December, 2017

34. Place of supply of training services…Section 12(5)
Services in relation to training and performance appraisal
Supplied to a registered person
Supplied to a unregistered person
Location of such person
Location where service are actual performed
Training through Tele-conferencing, video-conferencing etc….Place of performance???
CA Rajiv Luthia
17th December, 2017

35. Place of supply of services of admission to events.. Section 12(6)
POS for services by way of admission, including ancillary services to :
a cultural, artistic, sporting, scientific, educational, or entertainment event; or
amusement park; or
any other place
is where the event is actually held or where such park or other place is located.
CA Rajiv Luthia
17th December, 2017

36. Place of supply of services event related services…Section 12(7)
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
Services ancillary to organization of any of the above events or services, or assigning of sponsorship of any of the above events
Supplied to a unregistered person
Supplied to a registered person
Place where event is actually held
If Event held outside India, Place of Supply shall be location of the recipient
Location of such person
CA Rajiv Luthia
17th December, 2017

37. Place of supply of services event related services. Sec 12(7)
Where event is held in more than 1 state and a consolidated amount is charged, POS is 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 contract or on other reasonable basis in absence of contract.
CA Rajiv Luthia
17th December, 2017

38. POS- event related services. Sec 12(7)-ISSUE
M/s R.J.LUTHIA & ASSOCIATES located & registered in Mumbai, organized GST seminar in SILVER PALACE, RAJKOT.
The fees for GST seminar is Rs. 10,000/- per pax. 200 participants enrolled ( i.e. 100 from Rajkot & 100 from Mumbai).
Discuss POS?
POS of service to registered person….location of such person
POS of service to unregistered person…..place where event held
If the seminar is organised at SRILANKA, what is POS
POS of services for event held outside india…..location of recipient
CA Rajiv Luthia
17th December, 2017

39. Place of supply of goods transport service…Section 12(8)
Services by way of Transportation of goods including mail or courier
Supplied to a registered person
Supplied to a unregistered person
Location of such person
Location at which such goods are handed over for their transportation
CA Rajiv Luthia
17th December, 2017

40. ISSUE
SAMEER Ltd located in Mumbai. They avails GTA Service of M/s. KAPADIA TRANSPORT of RAJKOT to deliver goods from Job worker located at RAJKOT to another job worker located at BARODA at a freight of Rs 10,000/-
Discuss POS?
Whether GST is applicable on freight of Rs. 10,000/-?. If Yes, Who is liable to pay ? Whether CGST & SGST or IGST?
17th December, 2017
CA Rajiv Luthia

41. Analysis POS Is Maharashtra in view of Section 12(8)
Location of supplier i.e. Transporter is Gujarat.
Hence, above GTA Transaction will be inter state supply in view of section 7(1)
Tax is payable under RCM as per notification 10/2017- IG
17th December, 2017
CA Rajiv Luthia

42. Place of supply of passenger transport service…Section 12(9)
POS of passenger transportation services
Supplied to a registered person
Supplied to a unregistered person
Location of such person
Place where the passenger embarks on the conveyance for a continuous journey
CA Rajiv Luthia
17th December, 2017

43. Place of supply of passenger transport service
Ticket booked at Mumbai
Travelling from Mumbai – Gujarat
Jet Airways – Mumbai
Registered Person - Karnataka
POS shall be Karnataka
IGST will be charged
CA Rajiv Luthia
17th December, 2017

44. Place of supply of passenger transport service
Ticket booked at Mumbai
Travelling from Mumbai – Gujarat
unregistered Person - Karnataka
POS shall be Mumbai
Jet Airways - Mumbai
CGST & SGST of Maharashtra will be charged
CA Rajiv Luthia
17th December, 2017

45. Place of supply of passenger transport service
Where the right to passage is given for future use and point of embarkation is not known at the time of issue of right to passage, POS
If supplied to a registered person is location of such person.
If supplied to an unregistered person
Location of recipient where address on record exists; and
Location of supplier in other cases
Return journey is treated as a separate journey even if the right to passage for onward and return journey is issued at the same time.
CA Rajiv Luthia
17th December, 2017

46. Place of supply of passenger transport service
Section 2(3) of IGST - “Continuous journey” means a journey for which a single or more than one ticket or invoice is issued at the same time, either by a single supplier of service or through an agent acting on behalf of more than one supplier of service, and which involves no stopover between any of the legs of the journey for which one or more separate tickets or invoices are issued.
Explanation : Explanation.––For the purposes of this clause, the term “stopover” means a place where a passenger can disembark either to transfer to another conveyance or break his journey for a certain period in order to resume it at a later point of time
CA Rajiv Luthia
17th December, 2017

47. Place of supply of services on board a conveyance
POS of services on board a conveyance such as vessel, aircraft, train or motor vehicle is location of the first scheduled point of departure of the conveyance for the journey. [12(10))]
Section 2(34) of CGST Act… “conveyance” includes a vessel,
aircraft and a vehicle.
CA Rajiv Luthia
17th December, 2017

48. Place of supply of services on board a conveyance
Mum- Del Leg
Del – Kol leg
Kolkata
Mumbai
Delhi
Food Served on Delhi – Kolkata Leg to passenger boarded on flight from Delhi
POS shall be Mumbai
CA Rajiv Luthia
17th December, 2017

49. Place of supply of telecommunication services…Section 12(11)
POS of telecommunication service including data transfer, broadcasting, cable & DTH television services
By way of Fixed telecommunication line, leased circuits, internet leased circuit, cable or dish antenna
Mobile connection on post-paid basis
Mobile connection service on pre-payment through a voucher or any means
Location of billing address of recipient of service on record of the supplier
Through selling agent or re-seller or a distributor of SIM card or re-charge voucher
By any person to final subscriber
Location where they are installed
Location where such pre-payment is received or such voucher are sold
Address as per record of supplier
CA Rajiv Luthia
17th December, 2017

50. Place of supply of telecommunication services
Provided that where the address of the recipient as per the records of the supplier of services is not available, the place of supply shall be location of the supplier of services .
Provided If such pre-paid service is availed or recharge is made through internet banking or other electronic mode of payment, POS would be the location of recipient of service on record of the supplier
Explanation : where the leased circuit is installed in more than 1 state and a consolidated amount is charged, POS is 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 contract or on other reasonable basis in absence of contract.
17th December, 2017
CA Rajiv Luthia

51. Place of supply of banking services
POS of banking and other financial service including stock broking services to any person is location of recipient of service on the records of supplier [12(12)]
If location of recipient is not on records of supplier, POS shall be location of supplier
CA Rajiv Luthia
17th December, 2017

52. Place of supply of insurance service….Section 12(13)
POS of Insurance Service
Supplied to a registered person
Supplied to a unregistered person
Location of such person
Location of recipient of service on the records of supplier
CA Rajiv Luthia
17th December, 2017

53. Place of supply of advertisement service to govt.
POS of advertisement services to the CG/SG, 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 determined in terms of contract and in absence, on reasonable basis. [12(14)]
CA Rajiv Luthia
17th December, 2017

54. Comparison between PPS & POS (Domestic)
PPSR
Particulars
Domestic POS
Comments
Rule 3
General Rule
12 (2)
At par
Location of recipient if address available
otherwise location of supplier
Rule 4
Performance based
12 (4)
Restaurant & Catering also included
Personal presence of recipient not required under GST
Rule 5
Immovable property
12 (3)
Vessel & boat also included
Only direct services are covered under PPSR.
All ancillary services also covered under POS - GST
Rule 6
Events
12(6) & 12 (7)
Common rule under PPSR for admission to events & organization of events
Rule 7
Services provided at more than 1 location
NIL
No such separate rule under POS
CA Rajiv Luthia
17th December, 2017

55. Comparison between PPS & POS (Domestic)
PPSR
Particulars
POS
Comments
Rule 8
SP & SR both in taxable territory
Entire Section 12
Entire section for covering this situation
Rule 9 (a)
Banking Services
12(12)
Stock broker also covered under POS – GST
Rule 9 (b)
Online Information
12(2)
General Rule
Rule 9 (c)
Intermediary
No such separate rule under POS.. Covered by General Rule
9 (d)
Hiring of means of transportation upto 1 month
No such separate rule under POS…
Covered General Rule
CA Rajiv Luthia
17th December, 2017

56. Comparison between PPS & POS (Domestic)
PPSR
Particulars
POS
Comments
Rule 10
Goods Transport
12(8)
PPSR-Destination of goods
POS-location of recipient
Mail & courier excluded under PPSR now covered under POS
Rule 11
Passenger Transport
12(9)
PPSR-Place of embarkation
POS-location of registered recipient or place of embarking for unregistered person
Rule 12
Services on board a conveyance
12(10)
At par i.e. 1st scheduled point of departure
CA Rajiv Luthia
17th December, 2017

57. Comparison between PPS & POS (Domestic)
PPSR
Particulars
POS
Comments
NIL
Training or performance appraisal
12(5)
No separate rule under PPSR
Insurance
12(13)
Advertisement to CG/SG/ SB/LA
12 (14)
CA Rajiv Luthia
17th December, 2017

58. Place of supply of services - International (section 13)
Section 13 – Applies only where location of supplier of service or location of recipient of service is outside India
POS of services (other than specified services) shall be location of recipient of service.
In case the location of the recipient of service is not available in ordinary course of business, POS shall be location of Supplier of service.
CA Rajiv Luthia
17th December, 2017

59. Place of supply of performance based services -13(3)
Nature of Services
Place of Supply
Types of Services
Performance based service
Place of performance
Services provided in respect of goods that are required to be made physically available: e.g. Repair, Reconditioning or any other work on goods, courier service, cargo handling service
When provided from a remote location by way of electronic means, the place of provision shall be where goods are situated at the time of supply of service E.g. : Updating of Software, Patch work etc
Shall not apply in case service provided for goods that are temporarily imported into India for repairs, reconditioning or reengineering for re export without being use in India
17th December, 2017
CA Rajiv Luthia

60. Place of supply of performance based services
Nature of Services
Place of Supply
Types of Services
Performance based service
Place of performance
Services supplied to individual, either represented as recipient of service or person acting on behalf of recipient, which required physical presence of receiver, represented either as the service receiver or a person acting on behalf of the receiver
E. g. - Services like cosmetic or plastic surgery, classroom teaching, beauty treatment etc.
17th December, 2017
CA Rajiv Luthia

61. Place of supply of property related services – 13(4)
Nature of Services
Place of Supply
Types of Services
Related to immovable property
Place where the immovable property is located or intended to be located
Applies only to services supplied directly in relation to Immovable property, including service supplied by expert & estate agent, supply of hotel accommodation by hotel, inn, guest house, club, or campsite, grant of right to use immovable property, service for carrying out co-ordination of construction work, including architects or Interior decorators
This would not include services that have only an indirect bearing on an immovable property. E.g.: Services of an agent who arranges finance for the purchase of property, advice on property prices, tax consultant services on capital gains of immovable property.
17th December, 2017
CA Rajiv Luthia

62. Place of supply of services of admission to events -13(5)
Nature of Services
Place of Supply
Types of Services
Related to events – admission or organization of event
The place where the event is actually held
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 or organization shall be the place where the event is held
Provision of sound engineering for an artistic event which is a prerequisite for staging of that event would be considered as a service ancillary to its organization
17th December, 2017
CA Rajiv Luthia

63. Place of Supply - More than 1 location – Section 13(6)
Nature of Services
place of Supply
Types of Services
Services referred in 13(3), 13(4) & 13(5) supplied from more than one location
The location in the taxable territory
Any service referred to in section 3, 4, or 5 is provided at more than one location, including a location in the taxable territory
Thus, if “X” Ltd Indian firm located in Mumbai provides a ‘technical testing of goods’ to an overseas firm ABC (England) for a consolidated price of Rs 1 lac and testing is carried out in Maharashtra (20%), Kerala (25%), and an international location ,Colombo (55%).
Whether CGST/SGST of Maharashtra will be levied or IGST will be levied? On what amount?....
Under PPSR it was provided that “the greatest proportion of service is provide”…….Under POS-GST such words missing
17th December, 2017
CA Rajiv Luthia

64. Place of supply – More than 1 state – 13(7)
Nature of Services
Determination of place of Supply
Types of Services
Services supplied in more than one State/UT
On Proportion Basis
Value shall be proportioned to each state in terms of contract or agreement or on reasonable basis as may be prescribed.
Y Ltd – Foreign Co. (Hosting event in India)
X Ltd - Mumbai (Event organizer) – Indian Co.
Lumpsum – Rs 50 Lacs
Mumbai
Goa
Delhi
On What value to levy tax?
IGST or CGST/SGST?
17th December, 2017
CA Rajiv Luthia

65. PLACE OF SUPPLY OF SPECIFIED SERVICE.. Section 13(8)
Nature of Services
Place of Supply
Types of Services
Specified services
Location of Supplier of service
Services provided by a banking company, or a financial institution, or a non-banking financial company, to account holders;
Intermediary services;
Service consisting of hiring of means of transport, other than aircraft and vessels except yachts, up to a period of one month
Section 2(13) - “Intermediary” means a broker, an agent or any other person, by whatever name called, who arranges or facilitates the supply of goods or services or both, or securities, between two or more persons, but does not include a person who supplies such goods or services or both or securities on his own account
17th December, 2017
CA Rajiv Luthia

66. ISSUE
Kotak Securities Ltd located in Mumbai provided services of Portfolio management to various clients.
They have obtained GST registration only instate of Maharashtra. They have clients located in Maharashtra, Gujarat & Dubai.
They charge Annual maintenance fees & performance fees to their client for the PMS services.
The client located in Dubai is of Indian origin & also maintain NRE account in India.
17th December, 2017
CA Rajiv Luthia

67. ISSUE
For the purpose of Management of portfolio they make payment towards corpus fund from their NRE account to Kotak securities in Mumbai in Indian Currency. However, their correspondence/permanent address is that of Dubai.
Kotak securities limited seek your advice whether GST is leviable on fees charged to the Dubai clients?
17th December, 2017
CA Rajiv Luthia

68. Analysis
The services of Portfolio Management supplied by KOTAK is not “ Intermediary Services” hence not covered under Section 13(8).
POS would be determined based on section 13(2) of the IGST Act,2017 which is the location of recipient of service.
Since payment is not in convertible foreign exchange is does not tantamount to be export of service ( i.e. zero rated service).
As per Section 7 (5) (a) of IGST, such supplies of services shall be “ interstate supply of services”. Hence KOTAK should charge IGST on such transaction. .
As per Section 16(1)(a) of the IGST Act,2017, “zero rated supply” means export of goods or services or both
17th December, 2017
CA Rajiv Luthia

69. Analysis
As per Section 2(6) of the IGST Act,2017, “export of service” means the supply of any service when, -
The supplier of service is located in India
The recipient of service is located outside India
The place of supply of service is located outside India
The payment for such service has been received by the supplier of service in convertible foreign exchange; and
The supplier of service and the recipient of service are not merely establishments of a distinct person in accordance with Explanation 1 in Section 8.
Since payment is not in convertible foreign exchange it does not tantamount to be export of service ( i.e. zero rated service).
As per Section 7 (5) (a) of IGST, such supplies of services shall be “ interstate supply of services”. Hence you should charge IGST on such transaction.
17th December, 2017
CA Rajiv Luthia

70. PLACE OF SUPPLY OF SERVICE
Nature of Services
Supply of service
Types of Services
Goods transport services other than by way of mail or courier
Place of destination of goods
The place of supply of services of transportation of goods shall be the place of destination of goods
Passenger transportation services
Place where the passenger embarks on the conveyance for a continuous journey
Services provided on board a conveyance
the first scheduled point of departure of that conveyance for the journey
Services Supplied on board a conveyance during the course of a passenger transport operation, including services intended to be wholly or substantially consumed while on board
E.g.: A video game is provided as on board during Kolkata- Delhi leg of a Bangkok- Kolkata- Delhi flight. The place of supply will be Bangkok and hence not liable to tax
17th December, 2017
CA Rajiv Luthia

71. PLACE OF SUPPLY – Online Information & database access.. Section 13(12)
Nature of services
Supply of service
Condition
Online information & database access or retrieval service
Location of recipient of service
Location deemed to be in taxable territory if any 2 following non- contradictory condition satisfied
Location of address presented by recipient of service via internet is in taxable territory
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 services settles payment has been issued in the taxable territory?????
Billing address of recipient of service is in taxable territory
IP address of device used by recipient is in taxable territory
Bank account of recipient used for payment is in taxable territory
SIM card used by recipient of service is in taxable territory
Location of fixed land line through which service received is in taxable territory
17th December, 2017
CA Rajiv Luthia

72. Payment of tax by supplier of OIDAR (section 14)
On supply of online information and database access or retrieval services By
Any person located in a non-taxable territory
Received By
a non-taxable online recipient
The supplier of services located in a non-taxable territory shall be the person liable for paying integrated tax on such supply of services
The supplier of online information and database access or retrieval services Shall for payment of integrated tax, take a single registration under the Simplified Registration Scheme to be notified by the Government
Provided that any person located in the taxable territory representing such supplier for any purpose in the taxable territory shall get registered and pay integrated tax on behalf of the supplier or shall appoint a person in taxable territory to pay tax.
CA Rajiv Luthia
17th December, 2017

73. Payment of tax by supplier of OIDAR (section 14)
Provided where an intermediary located in the non-taxable territory arranges or facilitates the supply of such services, then it shall be deemed to person liable to pay tax except when such intermediary satisfies the following conditions
The invoice or customer’s bill or receipt issued or made available by such
intermediary taking part in the supply clearly identifies the service in question and its
supplier in non-taxable territory
The intermediary involved in the supply does not authorise the charge to customer or take part in its charge which is that the intermediary neither collects or processes payment in any manner nor is responsible for the payment between the non-taxable online recipient and the supplier of such services
The intermediary involved in the supply does not authorise delivery
The general terms and conditions of the supply are not set by the intermediary involved in the supply but by the supplier of services.
Special
CA Rajiv Luthia
17th December, 2017

74. CA. Rajiv Luthia R. J. Luthia & Associates, Chartered Accountants
WITH KNOWLEDGE……… WE KNOW THE WORDS,
BUT WITH EXPERIENCE……... WE KNOW THE MEANING
CA. Rajiv Luthia
R. J. Luthia & Associates,
Chartered Accountants
610/611, Parmeshwari Centre, Above FEDEX Motors, Dalmia Estate,
Off. LBS Marg, Mulund (West), Mumbai
Tel : / Mobile :
17th December, 2017
CA Rajiv Luthia