PLACE OF SUPPLY UNDER GST

PLACE OF SUPPLY UNDER GST
CA PRATIK SUDHIR SHAH

Concept of Place of Supply
GST is a destination based tax, i.e., the goods/services will be taxed at the place where they are consumed and not at the origin. So, the state where they are consumed will have the right to collect GST. This, in turn, makes the concept of place of supply crucial under GST as all the provisions of GST revolves around it. CA PRATIK SUDHIR SHAH

I. Supply of Goods_Where it involves movement of Goods
Place of Supply shall be the Location of the goods at the time when movement of the goods terminates for delivery to the recipient. Example 1: Mr A of Maharashtra gets an order from Mr B in Gujarat for supply of T.V. Mr A arranges for transport and supply goods at the office of Mr B in Gujarat. Ans Movement of goods terminates for delivery to the recipient in Gujarat. Hence Mr A will charge IGST on such supply. Example 2: Mr A of Maharashtra gets an order from Mr B in Gujarat for supply of T.V. Mr B of Gujarat arranges for transport in Maharashtra and transporter loads goods and supply goods at the office of Mr B in Gujarat. Hence Mr A will charge IGST on such supply even though his duty / risk is completed in Maharashtra itself. CA PRATIK SUDHIR SHAH

II. Supply of Goods : Where goods are delivered by supplier to the recipient or any other person on direction of third person Goods shall be delivered to the recipient or any other person. Goods shall be delivered on direction of 3rd person who may be an agent Goods directed to be delivered during movement of goods either by way of transfer of documents of title to the goods or otherwise. In this case, Place of Supply shall be the Location of Place of Business of 3rd person under whose direction goods have been delivered. CA PRATIK SUDHIR SHAH

II. Supply of Goods : Where goods are delivered by supplier to the recipient or any other person on direction of third person_Illustration Example 1: Mr X in Maharashtra places an order to Mr Y in Maharashtra to deliver 100kgs of Material A to Mr Z in Gujarat. Ans Place of supply shall be location of the person under whose direction goods have been delivered . Hence place of supply shall be Location of Mr X ie Maharashtra. Mr Y will charge CGST and SGST to Mr X in Maharashtra. And Mr X will later charge IGST to Mr Z in Gujarat. Points to remember Supplier, Receiver and Third Person all must be engaged in the business. It will be three party transaction where Supplier will raise an invoice to Third Person on whose direction goods are delivered and that third person will raise an invoice to actual receiver of goods. CA PRATIK SUDHIR SHAH

II. Supply of Goods: Where goods are delivered by supplier to the recipient or any other person on direction of third person_Illustration Example 2: Q. Mr A of Mumbai a salaried employee has a friend Mr B who has an showroom of T.V in Mumbai. Mr C of Gujarat a friend of Mr A requires a TV for his office purpose. Mr A gives direction to Mr B to transfer TV to Gujarat to Mr C. Ans Since Mr A is not carrying on any business and has only helped Mr C in finding a dealer of TV such transaction will not be taxed in hands of Mr A. It will be directly taxed in hands of Mr C and IGST will be charged Business connection is essential ingredient. CA PRATIK SUDHIR SHAH

III. Supply of Goods_Where Supplies does not involve Movement of Goods.
Ownership of the goods is changed There is no Actual Transfer of the goods In this case, Place of Supply shall be Location of the Goods at the time of delivery to the recipient. Example : 1 S Ltd. (Chennai) opens a new showroom in Bangalore. It purchases a building for showroom from ABC Realtors (Bangalore) along with pre-installed workstations Place of supply: Bangalore GST: CGST& SGST There is no movement of goods (work stations), so the place of supply will be the location of such goods at the time of delivery (handing over) to the receiver. CA PRATIK SUDHIR SHAH

IV. Supply of Goods_Where Goods are assembled or installed at site.
In this case, Place of Supply of such goods shall be the Place of Installation or Assembly. Location of the buyer and seller is immaterial. Q. Mr X of Mumbai, place order on Mr Y of Mumbai for Installation of Generator in his factory located in Gujarat. Ans Generator is assembled by Mr Y in State of Gujarat. Hence as per Clause d of Section 10(1), Place of Supply will be the Place where Goods are Installed. It is immaterial that both X and Y are located in Mumbai Mr Y will charge IGST to Mr X in state of Gujarat. CA PRATIK SUDHIR SHAH

V. Supply of Goods_Where Goods are assembled on Board a Conveyance
In this case, Place of supply of goods shall be the Location where goods are loaded. Location of the buyer and seller is immaterial. Example 1: Q. Mr X of Delhi has supplied goods in Delhi to Y airlines (registered under GST in Maharashtra) flying from Delhi to Chandigarh. Goods are consumed by passengers in Chandigarh. Ans Place of Supply of Goods is Location where goods are loaded. Hence Place of supply shall be Delhi and Mr X who is also of Delhi shall charge CGST + SGST to airlines. CA PRATIK SUDHIR SHAH

V. Supply of Goods_Where Goods are assembled on Board a Conveyance
Example 2: Mr. Ajay is travelling from Mumbai to Chennai by air on behalf of his company R Ltd (registered in Bangalore). In the plane he purchases lunch. The airlines is registered in Mumbai & Chennai. Lunch was loaded in Plane from Mumbai, Maharashtra. Ans Place of supply: Mumbai GST: CGST & SGST The food items were loaded into the plane at Mumbai. So, place of supply becomes Mumbai. It does not matter where the buyer is registered CA PRATIK SUDHIR SHAH

CA PRATIK SUDHIR SHAH 9819122318 pratiksh2704@gmail.com

VI. Supply of Goods_When Goods are Imported into India or Exported out of India
The place of supply of goods: Imported into India will be the location of the importer. Exported from India shall be the location outside India. CA PRATIK SUDHIR SHAH

VI. Supply of Goods_When Goods are Imported into India or Exported out of India
Example 1- Import Q. Ms. Malini imports school bags from China for her shop (registered in Mumbai) Ans Place of supply: Mumbai GST: IGST to be paid Example 2- Export Q. Ms. Anita (Kolkata) exports Indian perfumes to UK Place of supply: Kolkata GST: Exempted or pay IGST and than claim Refund. CA PRATIK SUDHIR SHAH

VII. Supply of Services_General Rule

VII. Supply of Services_General Rule Registered to Registered
ILLUSTRATIONS a) Mr. A, a Chartered Accountant from Karnataka provides consultancy services to M/s S Ltd. (registered in Maharashtra). Mr A visits office of S Ltd in Maharashtra to provide consultancy services. Answer Place of supply: Maharashtra (location of registered person) GST: IGST b) Mr A, a Chartered Accountant from Karnataka receives a querry through from M/s S Ltd. (registered in Maharashtra). Mr A reply to the querry ie consultancy services through . CA PRATIK SUDHIR SHAH

c) Mr A, a Chartered Accountant has its office in Karnataka. Mr B, a Registered Taxable Person from Maharashtra visits office of Mr A in Karnataka. He gets consultancy services from Mr A from Mr A’s office. Answer Place of supply: Maharashtra (location of registered person) GST: IGST d) Mr A, a Chartered Accountant from Karnataka is travelling to Maharashtra to attend a conference. Mr B a registered taxable person in Maharashtra meets Mr A in Maharashtra through co-incidence and discuss about his querries. Mr A gives reply to the querries. Mr B gets very happy and so he himself pays consideration to Mr A. Mr A issues invoice to Mr B Location of Supplier : Karnataka (Even though Mr A was in Maharashtra) Location of Receiver : Maharashtra GST : IGST CA PRATIK SUDHIR SHAH

e) Mr A, a registered dealer in Karnataka is on a holiday in Kerela. Mr B a registered taxable person of Maharashtra is also in Kerela on Holiday. Mr A and Mr B become goods friends in Kerela. Mr B discusses his office querries and Mr A gives opinion about querries to Mr B. Mr B love the solutions for querries and hence pay Rs 10,000 to Mr A in Kerela. Mr A later issues invoice to Mr B Answer Location of Supplier : Karnataka (Even though Mr A was in Kerela for Holiday) Location of Receiver : Maharashtra (Even though Mr B was in Kerela for Holiday) GST : IGST CA PRATIK SUDHIR SHAH

VII. Supply of Services_General Rule_Registered to Un – Registered Person and Address available on record ILLUSTRATIONS a) Mr. Ajay (Karnataka) provides consultancy services to Mr. Vijay (unregistered but address on record shows Tamil Nadu). Answer Place of supply: Tamil Nadu (address of unregistered person is available on record) GST: IGST CA PRATIK SUDHIR SHAH

VII. Supply of Services_General Rule_Registered to Un – Registered Person and Address not available on record ILLUSTRATIONS a) Mr. Ajay (Karnataka) provides consultancy services to Mr. Anand (unregistered and address is not available). Answer Place of supply: Karnataka (Location of Service Provider) GST: CGST + SGST CA PRATIK SUDHIR SHAH

VII. Supply of Services_General Rule_Registered to Un – Registered Person but change in Address not intimated ILLUSTRATIONS Mr A, C.A. of Mumbai provides Services to his client Mr X who is un-registered under GST. Address of Mr X available with C.A. is of Mumbai. Mr X shifts to Rajasthan but does not inform it to C.A. Answer Mr X is unregistered and address on record with Mr A is of Maharashtra Mr X has not informed Mr A for change in Address. Place of Supply : Mumbai GST : CGST + SGST CA PRATIK SUDHIR SHAH

VIII.Supply of Services_Specific Services
Specific Services covers Restaurant and Catering Services Personal Grooming Services Fitness Services Beauty Treatment Services Health Services including Cosmetic and Plastic Surgery CA PRATIK SUDHIR SHAH

Recipient Place of Supply Example 1) Restaurant and Catering Services Any Person At the Place of Location of Rendering the Services Mr A, a caterer based in Maharashtra provides catering services for an event in Maharashtra. Place of Supply shall be place where services are actually performed. Place of Supply shall be Maharashtra and GST shall be CGST & SGST. 2) Services pertaining to personal grooming, fitness, beauty treatment and health services, (this also includes cosmetic and plastic surgery) 1) Mr A has beauty clinic in Mumbai. Mr B visits clinic and receive beauty services. Place of Supply shall be Location of Rendering Services ie Maharashtra. 2) Mr A is service provider of Beauty Treatment. He visits Mr B in Tamil Nadu and provide services at house of Mr B. Place of Supply shall be Location of Rendering Services ie Tamil Nadu. CA PRATIK SUDHIR SHAH

Illustration : Restaurant and Catering Q . Raj Caterers in Mumbai, Maharashtra, provides catering services to ABC Ltd. (registered in Gujarat) for their annual sales event in Mumbai. Ans Supply of service: Catering Place of supply: Maharashtra ie place where Catering Services are actually performed GST to be charged : CGST + SGST by Raj Caterers to ABC Ltd. Q. Raj Caterers in Mumbai, Maharashtra, provides catering services to ABC Ltd. (registered in Gujarat) for their annual sales event in Ahmedabad Place of supply: Gujarat ie place where Catering Services are actually performed GST to be charged : IGST by Raj Caterers to ABC Ltd. IMPORTANT NOTE WHETHER RAJ CATERER CHARGES IGST OR OBTAIN NUMBER IN GUJARAT AND CHARGES CGST AND SGST, IN BOTH CASES, GST STATE COMPONENT WILL GO TO STATE OF GUJARAT. CA PRATIK SUDHIR SHAH

Illustration : Personal Grooming Personal Grooming means how people take care of their body and appearances. It includes make up, hair removal, dressing etc. As per Cambridge Dictionary it means things that you do to make your appearance clean and neat. Q.Miss A, from Karnataka visits Mr B’s Saloon for Personal Grooming in Kerala. Ans Supply of service: Personal Grooming Place of supply: Kerala, place where Services are performed GST to be charged : CGST + SGST of Kerela Q. Miss A, from Karnataka invites Mr B of Kerela for her personal grooming in state of Karnataka Place of supply: Karnatka, place where Services are performed GST to be charged : IGST CA PRATIK SUDHIR SHAH

Illustration : Fitness, Beauty Treatment and Healthcare Services Meaning of Fitness Services shall be the activities carried for physical well being of the individual. Q. Mr A has opened a Fitness centre in state of Maharashtra. Mr B a registered taxable person of Gujarat visits Fitness centre in Maharashtra to obtain Fitness Services. Ans Supply of Service : Fitness Services Place of Supply : Maharashtra, place where Fitness Services are performed. Location of Service Receiver is immaterial GST to be charged : CGST & SGST of Maharashtra. Q. Mr A is a consultant of Beauty Treatment in state of Maharashtra. Mr B of Gujarat invites Mr A to Gujarat to obtain Fitness Services Supply of Service : Beauty Treatment Services Place of Supply : Gujarat, place where Fitness Services are performed. Location of Service Receiver is immaterial GST to be charged : IGST. CA PRATIK SUDHIR SHAH

IX. Supply of Services_Training & Performance Appraisal.
Training & Performance Appraisal Service Recipient is Registered Person Location of Place of Business of Registered Recipient Training and Performance Appraisal Service Recipient is Un- Registered Person Location where Services are performed CA PRATIK SUDHIR SHAH

Example 1 – Training to Registered Person Q. K Ltd of Gujarat hires A Ltd Consultancy registered in Maharashtra to impart soft- skills training to its employees. The training will be conducted in Mumbai. Ans Supply of service: Training Place of supply: Gujarat (since the recipient is a registered person, location of place of business of recipient is the place of supply) GST: IGST (inter-state as supplier is in Maharashtra & recipient is in Gujarat) CA PRATIK SUDHIR SHAH

Example 2 – Training to Registered Person Q. Mr X residing in Maharashtra has a factory in state of Gujarat. He hires Mr P of Mumbai, Maharashtra to provide Training on working of Plant and Machinery to workers of factory in Gujarat. Workers came to Mumbai for training at office of Mr P. Ans Supply of service: Training Place of supply: Gujarat (since the recipient is a registered person, location of place of business of recipient is the place of supply) GST: IGST (inter-state as supplier is in Maharashtra & recipient is in Gujarat) CA PRATIK SUDHIR SHAH

Example 3 – Training to Un-Registered Person Q. Ms. Anita (unregistered person based in Bangalore) signs up with A Ltd Consultancy (Mumbai) for a training on public speaking. She attends the training in Mumbai. Ans Supply of service: Training Place of supply: Maharashtra (since the recipient is unregistered person, location where services are provided is the place of supply) GST: CGST + SGST of Maharashtra CA PRATIK SUDHIR SHAH

X. Supply of Services_Admission to an Event/Park.
Place of Supply shall be Location where Event is held or park is located. Example 1- Admission to Amusement Parks / Event Q. A person in Karnataka buys Admission Tickets for Cultural, Artistic, Sporting, Scientific, Educational, Entertainment etc Event in Kolkata, West Bengal. Ans Supply of service: Admission to an Event / Park. Place of supply: West Bengal (Location of the Event). GST: CGST+SGST of West Bengal. Q. A Person of USA buys admission tickets for Imagica in Maharashtra. Place of supply: Maharashtra (Location of the park). GST: CGST+SGST of Maharashtra. CA PRATIK SUDHIR SHAH

XI. Supply of Services_Organising an Event
Organizing Events include Cultural, Artistic, Sporting, Scientific, Educational, Entertainment etc. Case of Registered Person Place of Supply shall be Location of Recipient. Case of Un-Registered Person Place of Supply shall be Location of the Event Case if Event is Organised outside India Place of Supply shall be location of recipient irrespective of fact that event is organized outside India. Case where Event is organized in more than 1 state Supply will be treated as made in each of the states, in terms of the contract or agreement and in absence of a contract, on such other reasonable basis as may be prescribed. CA PRATIK SUDHIR SHAH

Example 1- Events managed for registered persons Y LTD (Mumbai) is hired by A LTD (Gujarat) to organize their annual sales event in Mumbai. Ans Supply of service: Organizing an Event Place of supply: Gujarat The recipient is a registered person, location of RECEIPIENT is the place of supply. Location of an Event is immaterial. GST to be charged : IGST Example 2- Events managed for unregistered persons Y LTD (Mumbai) is hired by Mr A (Unregistered based in Bangalore) to manage her sister’s wedding (held in Mumbai). Supply of service: Event management Place of supply: Mumbai The recipient is unregistered person, location of EVENT is the place of supply GST: CGST+SGST CA PRATIK SUDHIR SHAH

Example 3- Events managed outside India for registered persons Q. Y LTD (Mumbai) is hired by A LTD (Gujarat) to organize their annual business collaboration event in Singapore. Ans Supply of service: Event management Place of supply: Gujarat The recipient is a registered person, location of RECEIPIENT is the place of supply. Location of event is immaterial. GST: IGST Example 4- Events managed outside India for unregistered persons Q. J LTD (Mumbai) is hired by Ms. Malini (based in Bangalore) to manage her sister’s wedding (held in Dubai). Place of supply: Bangalore The location of event is outside India, the location of RECIPIENT is the place of supply CA PRATIK SUDHIR SHAH

XII. Supply of Services_Immovable Property
What is an immovable property? An immovable property is an immovable object, a property that cannot be moved without destroying or altering it. It is fixed to the earth, such as a piece of land or a house. Immovable property includes premises, property rights (for example, inheritable building right), houses, land and associated goods, and chattels if they are located on, or below, or have a fixed address. Situation for place of supply of services in relation to Immovable Property. 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 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 by way of accommodation in any immovable property for organizing any marriage or reception or matters related thereto, official, social, cultural, religious or business function including services provided in relation to such function at such property; or any services ancillary to the services referred to in clauses (a), (b) and (c), CA PRATIK SUDHIR SHAH

Input Tax Credit in above Place of supply of services provided in relation to an immovable property is the location of the immovable property which means GST will be CGST and SGST. CGST and SGST credit of one state cannot be used to set-off the liability of another state. In the cases of Mr P (Registered in Gujarat) visits Taj Hotel (Mahar) (cases of hotel accommodations). Mr P is paying CGST & SGST (Maharashtra) although it is registered in Gujarat. Therefore, it cannot claim ITC of Maharashtra SGST & CGST against output Gujarat SGST & CGST. CA PRATIK SUDHIR SHAH

XIII. Supply of Services_Transportation of Goods
Example 1: Goods Transported XYZ, a goods transportation company based in Karnataka, is hired by A Ltd registered in Karnataka to transport 50 tv sets to Mumbai. Ans Supply of service: Transporting goods Place of supply: Karnataka (the location of registered person) GST: CGST+ SGST (intra-state) RECEIVER PLACE OF SUPPLY Service Receiver is Registered Person Location of Place of Business of Such Person (Receiver) Service Receiver is Un-Registered Person Location at which such goods are handed over for transportation. CA PRATIK SUDHIR SHAH

Example 2 : Goods Transported XYZ, a goods transportation company based in Karnataka, is hired by V Ltd (registered in Maharashtra) to transport 200 saris from Bangalore to Mumbai. Answer Supply of service: Transporting goods Place of supply: Maharashtra (the location of registered person) GST: IGST (inter-state) Example 3- Goods transportation by unregistered person Mr. Sharma (in Bangalore) is transferring his car by rail freight to Mumbai. He puts up the car in Bangalore station. Place of supply: Karnataka (Location at which such goods are handed over for their transportation) GST: CGST+SGST (Indian railways have a pan-India presence and are registered in all states) CA PRATIK SUDHIR SHAH

Example 4 Mr X a transporter having registered office in Maharashtra is hired by a person Mr Y registered in Gujarat. Mr Y stock of goods are in Mumbai and asks Mr X to transport goods from Mumbai to Nagpur. What will be Place of Supply?? Answer Goods are supplied from Mumbai to Nagpur ie Maharashtra to Maharashtra. Supplier of Services ie Mr X : Located in Maharashtra. Receiver of Services ie Mr Y : Located in Gujarat In case Receiver of Services is Registered, Place of Supply of Services for Transportation of Goods will be Location of Recipient of Services Hence Place of Supply shall be Gujarat even though goods are supplied within the State. Mr X needs to charge IGST. CA PRATIK SUDHIR SHAH

Example Mr X a transporter having registered office in Maharashtra is hired by a person Mr Y Un - registered in Gujarat. Mr Y stock of goods are in Mumbai and asks Mr X to transport goods from Mumbai to Nagpur. What will be Place of Supply?? Answer Goods are supplied from Mumbai to Nagpur ie Maharashtra to Maharashtra. Supplier of Services ie Mr X : Located in Maharashtra. Receiver of Services ie Mr Y : Located in Gujarat In case Receiver of Services is Un-Registered than Place of Supply of Services for Transportation of Goods will be Location where goods have been handed over for Transportation ie Mumbai Maharashtra Hence Place of Supply shall be Maharashtra and Mr X shall charge CGST & SGST. CA PRATIK SUDHIR SHAH

XIV.Supply of Services_Transportation of Passengers
Note: For the purposes of passenger transport, the return journey shall be treated as a separate journey, even if the tickets for onward and return journeys are issued at the same time. Example1-Registered person A Ltd, registered in Bangalore, purchased corporate flight tickets from Bangalore to Delhi from ABC Air Travels Ltd.’s Delhi branch Answer Supply of service: Transporting passengers Place of supply: Karnataka (location of registered person) GST: IGST. Supply of service Place of supply a) To a registered person Location of Place of Business of registered recipient b) To an unregistered person Location where the passenger embarks on the conveyance. CA PRATIK SUDHIR SHAH

XIV.Supply of Services_Transportation of Passengers
Example 2-Unregistered person Q. Ms. Anita books a 2-way air journey from Bangalore to Kolkata. She leaves Bangalore on 1st Aug and lands in Kolkata the same day. She leaves Kolkata on 7th Aug and comes back to Bangalore the same day. She booked the return journey tickets in Bangalore at the same time. CA PRATIK SUDHIR SHAH Flight Ticket issued by Place of supply GST From Bangalore to Kolkata Bangalore branch of airlines Bangalore Since she is unregistered, the location where she embarks the journey becomes place of supply CGST+SGST (Karnataka) From Kolkata to Bangalore Bangalore branch of airlines Kolkata IGST

XV. Supply of Services_TELECOMMUNICATION SERVICES

XVI. Supply of Services_Banking & Financial Services
Banking & Financial Services: Place of Supply shall be : Location of the recipient of services on the records of the supplier of services. (Whether Registered or Unregistered Or Location of the supplier of services. (If Address is not available) Insurance Services: Place of Supply shall be : If Recipient is Registered : Location of Registered Recipient If Recipient is Un-Registered : Location of Recipient as per Records of Service Provider. CA PRATIK SUDHIR SHAH

XVI. Supply of Services_Banking & Financial Services

Case Studies_Place of Supply
Q. Mr. A of Nasik, Maharashtra sells 10 refrigerators to Mr. B of Pune, Maharashtra for delivery at Mr. B’s place of business in Pune. What will be Place of Supply Ans : For Goods, Place of supply shall be location where there is termination of delivery of goods. Hence Place of Supply shall be Pune. Mr A will charge CGST & SGST. Q. Mr. X (a supplier registered in Uttar Pradesh having principal place of business at Noida) asks Mr. Y of Ahmedabad, Gujarat to deliver 50 washing machines to his buyer Mr. Z at Jaipur, Rajasthan. In this case, how many supplies are involved and what will be GST Liability. Ans : It is concept of Bill to Ship to Model. Sales by Mr Y to Mr X : IGST, Place of Supply is UP Sales by Mr X to Mr Z : IGST, Place of Supply is Rajasthan CA PRATIK SUDHIR SHAH

Q. Mr. A (New Delhi) has leased his machine (cost Rs 8,00,000) to Mr. B (Noida, Uttar Pradesh) for production of goods on a monthly rent of Rs. 40,000. After 14 months Mr. B requested Mr. A to sell the machine to him for Rs 4,00,000, which is agreed to by Mr. A. What will be Place of Supply for sale of Machine ? Ans : Supply will be Inter State ie from New Delhi to UP and IGST to be charged. Actually goods are with Mr B only at time of sale but still it will be deemed that goods have moved from New Delhi to UP. Q. XZ Ltd. (Mumbai, Maharashtra) opens a new branch office at Gurugram, Haryana. It purchases a building for office from KTS Builders (Gurugram) along with pre-installed office furniture and fixtures. What will be place of supply ? Ans : Such Supply is case of supply without movement of goods. Hence Place of supply shall be Location of Goods at time of Supply. Hence Supply shall be Gurugam. CGST & SGST shall be charged. CA PRATIK SUDHIR SHAH

Q. P Ltd (Mumbai, Maharashtra) gives a contract to PQ Ltd. (Ranchi, Jharkhand) to assemble a power plant in its Kutch, Gujarat refinery. What will be Place of Supply ? Ans: Place of Supply shall be location where installation is done. P LTD needs to charge IGST since it is Inter State Sales. Q. Mr. X (New Delhi) boards the New Delhi-Kolkata train at New Delhi. He sells the goods taken on board by him (at New Delhi), at Jaipur during the journey. What is place of Supply? Ans : Place of Supply shall be Location where goods are assembled on board a conveyance. Since Mr X has loaded goods in new delhi place of supply shall be New Delhi. CA PRATIK SUDHIR SHAH

Q. Ms. M imports electric kettles from China for her Kitchen Store in Noida, Uttar Pradesh. Ms. M is registered in Uttar Pradesh. The place of supply is ? Ans: In case of Import, Place of Supply shall be location (state) where we have imported. Hence Place of Supply shall be UP. Q. Mr. A (a Chartered Accountant registered in New Delhi) makes a supply of service to his client Mr. B of Noida, Uttar Pradesh (registered in Uttar Pradesh). What will be Place of Supply ? Ans: Since supplier is registered Place of Supply shall be Location of Recipient ie UP. CA PRATIK SUDHIR SHAH

Q. Mr. A, a barber in Haryana, (registered) provides hair cutting services to his client Mr. C who is a resident of New Delhi but is not registered under GST. Mr C had come to saloon of Mr A. What is Place of Supply ? Ans : Services provided are specific services hence place of supply shall be Location where Services are performed. Hence POS shall be Haryana. Mr A shall charge CGST & SGST. Q. S Ltd, an architectural firm at Kolkata, has been hired by MKF Builders of Mumbai to draw up a plan for a high rise building to be constructed by them in Ahmedabad, Gujarat. What is place of supply ? Ans : Services provided are in relation to Immovable Property in Gujarat. Hence Place of Supply shall be Location of Immovable Property ie Gujarat. IGST to be charged. CA PRATIK SUDHIR SHAH

Q. Sometimes the immovable property may extend to more than one location, for example, a railway line, a national highway or a bridge on a river may originate in one State and end in the other State or a house boat stay may traverse more than one State. Ans : Place of Supply shall be each state as per terms of contract. The service is deemed to have been supplied in each of the respective States/Union territories, proportionately in terms of the value of the services. Q. Mr. A, a business man from Delhi dines in a restaurant at Mumbai while on a business trip. What will be Place of Supply ? Ans : Restaurant Services are covered under Specific Services. Place of Supply shall be Location where Services are performed ie location of Restaurant ie Mumbai. Restaurant will charge CGST & SGST. CA PRATIK SUDHIR SHAH

Q. Mr P, a makeup artist at Kolkata, goes to Jaipur, Rajasthan for doing the makeup of Ms. Simran Kapoor, a Bollywood actress registered in Mumbai. Ans : Make up services are covered under Specific Services. Place of Supply shall be location where Services are performed ie Rajashthan. IGST to be charged. It is immaterial that Mr P is of Kolkata and Simran is of Maharashtra. Q. Mr Pratik of Mumbai impart GST training to accounts and finance personnel of S Ltd. (Assam) at the company ’s Kolkata office. S Ltd is Registered in Assam. Ans : Such services are covered under Training. Since S Ltd is registered Place of Supply shall be Location of Recipient ie Assam. It is immaterial that Services were provided in Kolkata. IGST to be charged Q. Mr Pratik of Mumbai impart GST training to accounts and finance personnel of S Ltd. (Assam) at the company ’s Kolkata office. S Ltd is Un-Registered. Ans : Such services are covered under Training. Since S Ltd is Un-Registered, Place of Supply shall be Location where Services are performed. Hence Place of Supply shall be Kolkata. IGST to be charged. CA PRATIK SUDHIR SHAH

Q. Mr. B of New Delhi buys a ticket for an amusement park located in UP. What will be Place of Supply ? Ans : Services are of Admission to an Event. Place of Supply for Admission shall always be location where Event is held. Hence POS shall be UP. Q. Mega Events, an event management company at New Delhi, organizes an award function for P Ltd of Ahmedabad (registered in Gujarat). Event was held in Mumbai Ans : Services are of Organizing an Event. Place of Supply for Registered Recipient shall be location of Recipient. Hence POS shall be Gujarat and IGST will be charged. It is immaterial that Event was held in Mumbai. Q. Mega Events, an event management company at New Delhi, organizes an award function for P Ltd of Ahmedabad (registered in Gujarat). Event was held in Dubai. Ans : Services are of Organizing an Event. Place of Supply for Registered Recipient shall be location of Recipient. Hence POS shall be Gujarat and IGST will be charged. It is immaterial that Event was held in Dubai. CA PRATIK SUDHIR SHAH

Q. Grand Wedding Planners (Chennai) is hired by Mr. Ramesh (unregistered person based in Hyderabad) to plan and organise his wedding at New Delhi. Ans : Services are of Organizing an Event. Since Recipient is URD hence POS shall be Location where Event is held ie New Delhi. Hence IGST will be charged. Q. PR Pvt. Ltd., a GTA Registered in Kanpur, Uttar Pradesh, is hired by P Ltd (registered in Mah) to transport its consignment of goods to a buyer in New Delhi. What will be POS ? Ans : Services are of Transportation of Goods. POS shall be Location of Registered Recipient ie Maharashtra. It is immaterial that goods are transported to Delhi. CA PRATIK SUDHIR SHAH

Q. Mr A (Un-Registered) is transferred from UP to Mumbai. He hires GTA which transports his household goods and his family both to Mumbai. What will be POS ? Ans : Services in above question are for Transportation of Goods as well as Transportation of Passengers. For Goods : Since Mr A is URD, POS shall be location where goods are loaded ie UP. For Services : Since Mr A is URD POS shall be location where passenger embarks the journey ie UP. Q. A circus team from Russia organizes a circus in New Delhi. What will be POS ? Since Circus Team is an NRI, they need to obtain GST Number on temporary basis. Place of Supply shall be location of an event ie New Delhi. CA PRATIK SUDHIR SHAH

Q. Mr. A, CEO of XY Ltd., Mumbai (a company registered in Maharashtra buys insurance cover for the inventory stored in company’s factory located at Mumbai, from Excellent Insurers, Chennai (registered in Tamil Nadu). What is Place of Supply ? Ans : Case is of Insurance Services. Since Recipient is registered POS is Location of Recipient. Since Supplier is of Tamil Nadu and Recipient is in Maharashtra hence Insurancer will charge IGST. CA PRATIK SUDHIR SHAH

Section 13 of (IGST Act, 2017) : Place of Supply of Services (Supplier or Recipient located Outside India) SUPPLY RECEIVER PLACE OF SUPPLY EXAMPLE Services supplied in respect of goods which are required to be made physically available by the recipient of services to the supplier of services, or to a person acting on behalf of the supplier of services in order to provide the services Any Person Location where Services are actually performed A Ltd (UK) sends an engineer to Delhi to repair Air India Aircrafts. Place of Supply shall be Delhi ie Place where Services are performed. IGST. Services are provided from a remote location by way of electronic means Location where goods are situated at time of Supply of Services. A Ltd (UK) provides Services through Internet to Air India Aircrafts for Aircraft in Delhi. POS shall be Delhi ie Location of Goods at time of Supply. Services which require physical presence of the recipient (with Service Provider) Individual (or person on his behalf) Location where services are actually performed A Gym Trainer from US came to Mumbai to train actors for a movie. POS shall be Mumbai and GST shall be IGST. CA PRATIK SUDHIR SHAH

Section 13 of (IGST Act, 2017) : Place of Supply of Services (Supplier or Recipient located Outside India) SUPPLY RECEIVER PLACE OF SUPPLY EXAMPLE Services supplied in respect of Immovable Property Any Person Location where Immovable Property is Located An Architect from France was hired by Mr B to design a Building on Pune. POS shall be PUNE hence IGST under Reverse Charge. CA PRATIK SUDHIR SHAH

PLACE OF SUPPLY UNDER GST

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