Author: Rajakeerthy Jeyaram

PLACE OF SUPPLY OF SERVICES AS PER INTEGRATED GOODS AND SERVICE TAX ACT, 2017

Place of supply of services as per Integrated Goods and Services Tax Act 2017, when the supplier of service or recipient of service is located outside India.

Section reference Service rendered in relation to Nature of service Place of supply Note Reference
13(3)(a) Goods 1. Service rendered in relation to goods and
2. the goods are made available by the service recipient to the supplier of services or to any person on behalf of the supplier of services
Place where the services has been performed Note 1 & 2
Goods When the services mention in Section13(3)(a) has been provided from a remote location by electronic means Place where the goods are located
13(3)(b) Individual 1. Service rendered in relation to individual, either as recipient or to a person acting on behalf of the service recipient

2. Physical presence of the recipient or his representative is required with the supplier of services

Place where the services has been performed Note 2
13(4) Immovable property Services supplied directly in relation to an immovable property, including
1. services by interior decorators, architect, experts, estate agents
2. supply of accommodation by a hotel, inn, guest house, club or campsite, by whatever name called,
3. grant of right to use immovable property
4. Services for carrying out and co-odination of construction works
Location/ intended location of immovable property Note 2
13(5) Event management services Admission to, or organisation of a cultural, artistic, sporting, scientific, educational or entertainment event, or a celebration, conference, fair, exhibition or similar events, and ancillary services Location where the event is held Note 2
13(8) Banking services
Intermediary services Hiring services
Banking services
In termediary services
services consisting of hiring of means of transport, including yachts but excluding aircrafts and vessels, up to a period of one month.
Location of the supplier of services
13(9) Transportation of goods Transportation of goods excluding courier/mail Place of destination of goods
13(10) Transportation of passengers Transportation of passengers Place of embarkmen for continuous journey
13(11) Supply of services on board conveyance Supply of services on board conveyance First scheduled point of departure on such conveyance
13(12) supply of online information and database access or retrieval services supply of online information and database access or retrieval services Location of the recipient of services Note 3

Note 1: In case of services supplied in respect of goods which are temporarily imported into India for repairs and are exported after repairs without being put to any other use in India, Section 13(3)(a) does not apply.

Note 2: Where any services is supplied at more than one location, including a location in the taxable territory, its place of supply shall be the location in the taxable territory. (Section 13(6) of IGST Act,2017)

When the services are provided in more than one state or union territory and consolidated amount charged – the place of supply of services shall be in each of the respective States or Union territories proportionate to the value for services rendered separately / determined in terms of the contract or agreement entered into in this regard (Section 13(7) of IGST Act,2017)

Note 3: Service recipient shall be deemed to be located in the taxable territory, if any two of the following non contradictory
conditions are satisfied, namely:

* Location address provided by recipient is in taxable territoy
* Billing address is in taxable territory
* Internet protocol address is in taxable territory
* Credit card / debit card/ Store value card/ charge card/ smart card or any other card by which the recipient of services settles payment has been issued in the taxable territory;
*Bank account used for payment is maintained in the taxable territory
*Country code of the subscriber identity module card used by the recipient of services is of taxable territory
* Location of the fixed land line through which the service is received by the recipient is in the taxable territory.

 

GST levying process

This article is to explain how GST is levied on various transactions, depending on the place of supply.

Where GST is levied?

GST is leviable in case of all the transactions within the state, between the states & union territories, imports and exports.
However, GST shall not be applicable to the state of Jammu and Kashmir

Intra State Transactions:

Transactions within the state are termed as Intra state transactions. In case of supply of intra state transactions, CGST and SGST/UTGST shall be leviable.

Interstate Transactions:

Interstate transactions are the transactions between
1. the two states
2. The union territories
3. The State and Union territory

IGST shall be payable in case of Interstate transactions.

gst levied intrastate interstate

What is CGST, SGST, UTGST, IGST ?

CGST refers to Central Goods and Service tax. Also Known as Central Tax.
SGST refers to State Goods and Service tax. Also known as State Tax; UTGST refers to Union Territory Goods and Service tax;
IGST refers to Integrated Goods and Service tax.

How to determine Intra State / Inter State Transactions in GST?

Where the Supply of goods and services or both shall be treated as Interstate/ Intrastate shall be determined by
1. Location of Supplier of goods, services or both and
2. Place of Supply of goods, services or Both

For example, When the Location of supplier is in a State and Place of Supply in also in the same state, the transaction shall be treated as Intra state.
However, When the Location of supplier is in a State and Place of provision is in different state/ Union Territory, the transaction shall be treated as Inter state.

Sec 12 and Sec 13 of the IGST act, 2017 determines the place of supply of goods or services or both

When GST should be levied on Goods / Services ?

GST shall be leviable at the Time of Supply based on the prescribed rates.

Time of supply is governed by the Section of the CGST act, 2017.

 

How Input Tax Credit will be adjusted in GST?

IGST credit can be adjusted with IGST, CGST, SGST/UTGST.

CGST credit can be adjusted with IGST, CGST; Adjustment of SGST/UTGST cannot be done with CGST;

SGST/UTGST can be adjusted with IGST, SGST/UTGST.

input tax credit in GST

What are the different proposed GST rates?

At Present, the rates prescribed are 0%, 5%,12%, 18%,28%.

Goods and Services Tax – An overview

The presentation was done on 6th June, 2017 to Rotary club members. This presentation will provide basic understanding on the following topics:

  • Status of GST today
  • Why GST is required?
  • Present Tax regime Vs GST Tax regime
  • Who needs GST registration?
  • Who can opt for GST composition scheme?
  • GST invoice format
  • GST forms and their appropriate use

 

You may read / download the presentation here:

Presentation on Goods and Services Tax – An overview by CA Rajakeerthy

PLACE OF SUPPLY OF SERVICES AS PER INTEGRATED GOODS AND SERVICE TAX ACT, 2017

Section reference
Nature of service
Place of supply
Note Reference
12(3) Immovable property :

* Services provided by Architects, engineers, interior decorator, surveyor, and other related experts, grant of right to use or for carrying out / coordinating construction work
*lodging accomodation by hotel, inn, guest house, house stay, club or campsite, house boat or any other vessel
* Accommodation in any immovable property for organising any marriage or reception or matters related thereto, official, social, cultural, religious or business function including services provided in relation to such function
*Ancillary services in relation to the above

1. Location/ intended location of the immovable property

2. If property located outside India, location of the service recipient

Note 1
12(4) Restaurant and catering services, personal grooming, fitness, beauty treatment,  cosmetic and plastic surgery Location where the act has been performed
12(5) Training and performance  appraisal 1. Location of the Registered person (*)
2. In case of unregistered person, Place where the act has been performed
12(6) Admission to event:

Admission to cultural, artistic, sporting, scientific, educational, entertainment  events, amusement park and ancillary services

Place where the act/event has been actually held
12(7) Event management services:

Organizing and sponsorship of events mentioned in section 12(6) including conference, fair, exhibition, celebration etc

1. Location of the Registered person (*)
2. In case of unregistered person, Place where the act/event has been actually held
3. If event is held outside India, Location of the recipient
Note 1
12(8) Transportation of goods including by mail or courier 1. Location of the Registered person (*)
2. In case of unregistered person, place where goods are handed over for transportation
12(9) Passenger transportation service 1. Location of the Registered person (*)
2. In case of unregistered person embarks on conveyance for continuous journey
3. If place of embarkment is not certain, then section 12(2) applies
12(10) Services on board a conveyance including vessel, aircraft, train or motor vehicle Location of the first scheduled point departure
12(11) Telecommunication services – including data transfer,
broadcasting, cable and direct to home television (DTH) services :
Fixed telecommunication line, leased circuits, internet leased circuit, cable or dish antenna Address of the fixed telecommunication line Note 1
Mobile telecommunication and internet connection – post paid Billing address of the recipient Note 1
Mobile telecommunication and internet connection, DTH services  – prepaid 1. Location of the selling agent/ re-sellers / distributor

2. Location of from which Any person sells the voucher to final subscriber

Note 1
other cases Address of the service recipient as per records

if address not available, location of the supplier

Note 1
Prepaid service is availed or the recharge is made through internet banking/ electronic mode of payment Address of the service recipient as per records Note 1
12(12) Banking, financial services including stock broking Location of the service recipient available on records
12(13) Insurance services 1. Location of the Registered person (*)

2. In case of unregistered person, location of the service recipient available on records

12(14) Advertisement services to Central government, State government, a local authority meant for the States or Union territories Each of such States or Union territories Note 1
12(2) Residuary clause:

With respect to services not covered under above categories

1. Location of the Registered person (*)
2. In case of unregistered person, location of the service recipient available on records
3. If recipient address not available, location of the supplier of services

 

(*) Registered person indicates registered service recipient

Note 1: When the services are provided in more than one state or union territory and consolidated amount has been charged in respect of the said services, the place of supply of such services shall be taken as being in each of the respective States or Union territories in proportion to the value for services separately collected or determined in terms of the contract or agreement entered into in this regard or, in the absence of such contract or agreement, on such other basis as may be prescribed.