Place Of Supply PDF

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...

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. Place of supply of goods under GST defines whether the transaction will be counted as intra-state or inter-state, and accordingly levy of SGST, CGST & IGST will be determined. Inter State Supply Where location of the supplier and the place of supply are in: Two different states Two different union territories A state and a Union Territory Inter State Supply Supply of goods and/or from one state or Union territory to another state or union territory Import of goods till they cross the customs frontier Import of services Export of goods or services Supply of goods / services to / by SEZ Supplies to international tourists Any supply in the taxable territory which is not intra state supply Intra State Supply Where the location of the supplier and the place of supply are in the same state or union territory Supply of goods and/or services within the state or union territory Location of the supplier It is the registered place of business or the fixed establishment of the supplier from where the supply is made Sometimes a service provider has to go to a client location for providing service. However, such place would not be considered as the location of the supplier. It has to be either a regular place of business or a fixed establishment, which is having sufficient degree of permanence and suitable structure in terms of human and technical resources Place of Supply When There is Movement of Goods The provisions of section 10 of CGST Act will be applicable in such cases which are tabulated as under:- S.No. Nature of Supply of Goods Place of Supply (1) (a) Where the supply involves the movement of Location of the goods at the time at goods, whether by the supplier or the recipient which, the movement of goods or by any other person terminates for delivery to the recipient (1) (b) Where the goods are delivered to the recipient, The principal place of business of or any person on the direction of the third such person person by way of transfer of title or otherwise, it shall be deemed that the third person has received the goods (1) (c) Where there is no movement of goods either Location of such goods at the time by supplier or recipient of delivery to the recipient The provisions of section 10 of CGST Act will be applicable in such cases which are tabulated as under:- S.No. Nature of Supply of Goods Place of Supply (1) (d) Where goods are assembled or The place where the goods are assembled or installed at site installed (1) (e) Where the goods are supplied The place where such goods are taken on board on-board a conveyance like a vessel, the conveyance aircraft, train or motor vehicle (2) Where the place of supply of goods It shall be determined in such manner as may be cannot be determined in terms of prescribed sub-sections (2), (3), (4) and (5)  Example 1- Intra-state sales Mr. Raj of Mumbai, Maharashtra sells 10 TV sets to Mr. Vijay of Nagpur, Maharashtra The place of supply is Nagpur in Maharashtra. Since it is the same state CGST & SGST will be charged. Example 2-Inter-State sales Mr. Raj of Mumbai, Maharashtra sells 30 TV sets to Mr. Vinod of Bangalore, Karnataka The place of supply is Bangalore in Karnataka. Since it is a different state IGST will be charged.  Example 3- Deliver to a 3rd party as per instructions Anand in Lucknow buys goods from Mr. Raj in Mumbai (Maharashtra). The buyer requests the seller to send the goods to Nagpur (Maharashtra) In this case, it will be assumed that the buyer in Lucknow has received the goods & IGST will be charged. Place of supply: Lucknow (UP) GST: IGST  Example 4- Receiver takes the goods ex-factory Mr. Raj of Mumbai, Maharashtra gets an order of 100 TV sets from Sales Heaven Ltd. of Chennai, Tamil Nadu. Sales Heaven mentions that it will arrange its own transportation and take TV sets from Mr. Raj ex-factory Place of supply: Chennai, Tamil Nadu GST: IGST Although the goods are received ex-factory i.e in Maharashtra by the recipient, the movement of the goods terminates for delivery to the recipient only at Chennai, Tamil Nadu. Irrespective of whether the supplier or the recipient is actually undertaking the movement of goods, the place of supply is the location of goods where movement of goods terminates for delivery to the recipient which is at Chennai. Hence, IGST is applicable.  Example 5 – E-commerce sale Mr. Raj of Mumbai, Maharashtra orders a mobile from Amazon to be delivered to his mother in Lucknow (UP) as a gift. M/s ABC (online seller registered in Gujarat) processes the order and sends the mobile accordingly and Mr. Raj is billed by Amazon. Similar to example 3, it will be assumed that the buyer in Mumbai has received the goods & IGST will be charged. Place of supply: Mumbai, Maharashtra GST: IGST No Movement of Goods  Example 1- No movement of goods Sales Heaven 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. Note: There is no GST on purchase of building or part thereof. RENT of commercial space attracts GST  Example 2- Installing goods Strong Iron & Steel Ltd. (Jharkhand) asks M/s SAAS Constructions (West Bengal) to build a blast furnace in their Jharkhand steel plant Place of supply: Jharkhand GST: CGST & SGST Although M/s SAAS is in West Bengal, the goods (blast furnace) is being installed at site in Jharkhand which will be the place of supply. Note: M/s SAAS will have to be registered in Jharkhand to take up this contract. They can opt to register as a casual taxable person which will be valid for 90 days (extendable by 90 days more, on basis of a reasonable cause). Goods Supplied on a Vessel/Conveyance  Example 1- Plane Mr. Ajay is travelling from Mumbai to Delhi by air. He purchases coffee and snacks while on the plane. The airlines is registered in both Mumbai and Delhi. Place of supply: Mumbai GST: CGST& SGST The food items were loaded into the plane at Mumbai. So, place of supply becomes Mumbai.  Example 2- Plane- Business travel Mr. Ajay is travelling from Mumbai to Chennai by air on behalf of his company Ram Gopal and Sons (registered in Bangalore). In the plane he purchases lunch. The airlines is registered in Mumbai & Chennai. 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. In most cases CGST & SGST is charged because most airlines have a pan-India presence and will be registered in all states.  Example 3- Train Mr. Vinod is travelling to Mumbai via train. The train starts at Delhi and stops at certain stations before Mumbai. Vinod boards the train at Vadodara (Gujarat) and promptly purchases lunch on board. The lunch had been boarded in Delhi. Place of supply: Delhi GST: CGST & UTGST The food items were loaded into the train at Delhi. So, place of supply becomes Delhi. CGST & SGST is charged because Indian railways has a pan-India presence and will be registered in all states. It does not matter where the buyer is registered.  Note: If the place of supply of goods cannot be determined: in such a case the place of supply will be determined by Parliament rules on the basis of GST council recommendations Imports & Exports 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. The provisions of section 11 of CGST Act will be applicable in such cases which are tabulated as under:— S. No. Nature of Supply of Place of Supply Goods 11 (a) Import location of importer 11 (b) Export location outside India  Example 1- Import Ms. Malini imports school bags from China for her shop (registered in Mumbai) Place of supply: Mumbai GST: IGST Example 2- Export Ms. Anita (Kolkata) exports Indian perfumes to UK Place of supply: Kolkata GST: Exempted Place of Supply of Services The provisions of section 12 of CGST Act will be applicable in cases of domestic supplies i.e. where the location of supplier of services and the location of the recipient of services is in India S.No. Nature of Service Place of Supply 1. Immovable property Location at which the immovable property or boat or vessel is located or intended to be located if located outside India: location of the recipient related to services, including hotel accommodation 2. Restaurant and catering Location where the services are actually performed services, personal grooming, fitness, beauty treatment and health service 3. Training and performance B2B: location of such Registered person appraisal B2C: location where the services are actually performed 4. Admission to an event or Place where the event is actually held or where the park or the other place amusement park is located S.No. Nature of Service Place of Supply 5. Organisation of an event B2B: location of such Registered person B2C: location where the event is actually held if the event is held outside India: location of the recipient 6. Transportation of goods, B2B: location of such Registered person including mails B2C: location at which such goods are handed over for their transportation if the transportation is to a place outside India: place of destination of such goods 7. Passenger transportation B2B: location of such Registered person (return journey is treated as B2C: place where the passenger embarks on the conveyance for a separate journey) continuous journey 8. Services on board a Location of the first scheduled point of departure of that conveyance conveyance for the journey S.No. Nature of Service Place of Supply 9. Banking and other financial Location of the recipient of services on the records of the supplier services Location of the supplier of services if the location of the recipient of services is not available 10. Insurance services B2B: location of such Registered person B2C: location of the recipient of services on the records of the supplier 11. Advertisement services to the The place of supply shall be taken as located in each of such States Government proportionate value in case of multiple States S.No. Nature of Service Place of Supply 12. Telecommunication services Services involving fixed line, circuits, dish etc., and place of supply is the location of such fixed equipment. In case of mobile/Internet post-paid services, it is the location of billing address of the recipient. In case of sale of prepaid voucher, the place of supply is the place of sale of such vouchers. In other cases, it is the address of the recipient in records For the rest of the services other than the 12 services specified above, a default provision has been prescribed as under: S.No. Description of Place of Supply Supply 1. B2B Location of such Registered person 2. B2C (i) location of the recipient where the address on record exists, and (ii) location of the supplier of services in other cases  The provisions of section 13 of CGST Act will be applicable in cases of cross border supplies i.e. where the location of supplier of services or the location of the recipient of services is outside India. The provisions are given as under:— i) In respect of the following categories of services, the place of supply is determined with reference to a specific provision. Rest of the services are governed by a default provision. S.No. Nature of Service Place of Supply 1. Services supplied for goods that are required The location where the services are to be made physically available from a remote actually performed, The location location by way of electronic means (Not where the goods are situated applicable in case of goods that are temporarily imported into India for repairs and exported) 2. Services supplied to an individual and The location where the services are requiring the physical presence of the receiver actually performed 3. Immovable property-related Location at which the immovable services, including hotel accommodation property is located S.No Nature of Service Place of Supply. 4. Admission to or organisation of an event The place where the event is actually held 5. If the said three services are supplied at more than one locations i.e., (i) Goods & individual related (ii) Immovable property-related (iii) event related S.No Nature of Service Place of Supply. 5.1 At more than one location, including a location Its place of supply shall be the location in the taxable territory in the taxable territory where the greatest proportion of the service is provided 5.2 In more than one State Its place of supply shall be each such State in proportion to the value of services provided in each State 6. Banking, financial institutions, NBFC Location of the supplier of service Intermediary services, hiring of vehicles’ services etc. S.No Nature of Service Place of Supply. 7. Transportation of goods The place of destination of the goods 8. Passenger transportation place where the passenger embarks on the conveyance for a continuous journey 9. Services on-board a conveyance The first scheduled point of departure of that conveyance for the journey 10. Online information and database access or The location of recipient of service retrieval services  ii) For the rest of the services other than those specified above, the place of supply would be the location of the recipient of service. However if such location is not available in the ordinary course of business the place of supply would be the location of the supplier of service General Rules for Place of Supply of Services  Example 1- Registered Person Mr. Ajay (Karnataka) provides consultancy services to M/s Sumati Technologies Ltd. (registered in Maharashtra). Place of supply: Maharashtra (location of registered person) GST: IGST Example 2 – Unregistered Person Mr. Ajay (Karnataka) provides consultancy services to Mr. Vijay (unregistered but address on record shows Tamil Nadu). Place of supply: Tamil Nadu (address of unregistered person is available) GST: IGST  Example 3 -Unregistered Person & address is not available Mr. Ajay (Karnataka) provides consultancy services to Mr. Anand (unregistered and address is not available). Place of supply: Karnataka (unregistered person) GST: CGST + SGST Place of Supply for Specific Services specific services, i.e., performance-basedservices such as restaurant, training, events etc Supply at Restaurants Example 1- Restaurant Raj Hotels in Mumbai, Maharashtra, provides catering services to Polaris Ltd. (registered in Gujarat) for their annual sales event in Mumbai. Supply of service: Catering Place of supply: Maharashtra GST: CGST + SGST Example 2- Personal Grooming Ajay, a chartered accountant (Karnataka) has been advised to take an ayurvedic treatment at Om Ayurvedic Centre in Kerala. Supply of service: Health by Ayurvedic Centre Place of supply: Kerala GST: CGST + SGST Place of Supply for Training  Example 1 – Training Kyathi Industries Ltd (Gujarat) hires First Source Consultancy (Mumbai) to impart soft-skills training to its employees. The training will be conducted in Mumbai. Supply of service: Training Place of supply: Gujarat (since the recipient is a registered person, location of recipient is the place of supply) GST: IGST (inter-state as supplier is in Maharashtra & recipient is in Gujarat)  Example 2- Training unregistered person Ms. Anita (unregistered person based in Bangalore) signs up with Gavin Consultancy (Mumbai) for a training on public speaking. She attends the training in Mumbai. 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 Place of Supply in Events  If the immovable property (boat/vessel) is located in more than one State then all the states will be considered as place of supplies in proportion to the value of services. The states will share GST in proportion to the value of services. Example 1- Admission to amusement parks A person in Karnataka buys admission tickets for Nicco Park (amusement park) in Kolkata, West Bengal from the Nicco Park organizers. Supply of service: Admission Place of supply: West Bengal (Location of the park) GST: CGST+SGST  Example 2- Events managed for registered persons Yardy Event Managers (Mumbai) is hired by Akash Electronics (Gujarat) to organize their annual sales event in Mumbai. Supply of service: Event management Place of supply: Gujarat (since the recipient is a registered person, location of recipient is the place of supply) GST: IGST  Example 3- Events managed for unregistered persons Yardy Event Managers (Mumbai) is hired by Ms. Malini (based in Bangalore) to manage her sister’s wedding (held in Mumbai). Supply of service: Event management Place of supply: Mumbai (since the recipient is unregistered person, location of event is the place of supply) GST: CGST+SGST  Example 4- Events managed outside India for registered persons Yardy Event Managers (Mumbai) is hired by Akash Electronics (Gujarat) to organize their annual business collaboration event in Singapore. Supply of service: Event management Place of supply: Gujarat (since the recipient is a registered person, location of recipient is the place of supply). Location of event is immaterial. GST: IGST  Example 5- Events managed outside India for unregistered persons Jack and Jones Event Managers (Mumbai) is hired by Ms. Malini (based in Bangalore) to manage her sister’s wedding (held in Dubai). Supply of service: Event management Place of supply: Bangalore (since the location of event is outside India, the location of recipient is the place of supply) GST: IGST What is the place of supply of services in cases of training and performance appraisal services where the recipient is unregistered? a) Location of the service recipient b) Location of the service provider c) Location where the services are actually performed d) Location of the company providing services What is the place of supply of services in cases of restaurants and catering services? a) Location of the service recipient b) Location of the service provider c) Location where the services are actually performed d) Location of the owner of the restaurant What is the place of supply of services by way of transportation of goods to a registered person? a) Location of the registered person b) Location of the service provider c) Location of the transporter d) Location where loading of transport vehicle takes place  In case of mobile connection for telecommunication & internet services provided on pre-payment basis, the place of supply where the service provided through selling agent shall be the location of _____. a) Selling agent on the record of the supplier at the time of supply b) Billing address of the recipient of the services on the record of the supplier at the time of supply c) Place where such pre-payment is received d) None of above  An empirical study on awareness and perception of youth towards Chattrapati Shivaji Maharaj Practices in Management for _________