1. Place of Supply
CA Shailesh Bapat

2. 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

3. 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)

4. 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

5. 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

6. 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

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

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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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;

18. 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

19. 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

20. “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

21. 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

22. 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

23. 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

24. 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)

25. 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

26. 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

27. 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

28. 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

29. 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

30. 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)

31. 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

32. 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

33. 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

34. 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

35. 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)

36. Thank you