Place of Supply under GST

Compiled By –
Surabhi Bansal | Executive | Indirect Tax Vertical
Asija & Associates LLP | Chartered Accountants
gst@asija.in

Why Place of Supply is Important Factor in GST
Place of Supply is an important
factor under GST because: -
1. On the basis of place of supply we
can ascertain whether it is Intra-
state or Inter-state supply.
2. This in turn shall help us in
ascertaining, whether CGST + SGST
is payable on such supply or IGST
is payable.
We shall now discuss how to
determine Inter-state and Intra-state
supply.
gst@asija.inGST Wing | Asija & Associates LLP
Supply
Intra-state
CGST &
SGST shall
be charged
Inter-state
IGST shall
be charged

Inter -State Supply
How can a supply be identified as Inter-state?
A supply of goods / service shall be considered as an Inter-state supply when:
 The location of the supplier* and the place of supply* are in––
 two different States;
 two different Union territories; or
 a State and a Union territory
 Supply of goods/ service imported into the territory of India, till they cross the customs
frontiers of India,
 Supply of goods or services or both: –
 when the supplier is located in India and the place of supply is outside India;
 to or by a Special Economic Zone developer or a Special Economic Zone unit; or
 in the taxable territory, not being an intra-State supply and not covered elsewhere in
this section.

How can a supply be identified as Intra-state?
Supply of goods/ services 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.
Following supply of goods shall NOT be treated as intra-State supply,
 Supply of goods to or by a Special Economic Zone developer or a Special Economic Zone
unit;
 Goods imported into the territory of India till they cross the customs frontiers of India; or
 Supplies made to a tourist.
Note:
1. Where a person has
a. an establishment in India and any other establishment outside India;
b. an establishment in a State/ UT and any other establishment outside that State / UT; or
c. an establishment in a State/ UT and any other establishment being a business vertical registered
within that State/ UT,
Then such establishments shall be treated as establishments of distinct persons.
2. A person carrying on a business through a branch or an agency or a representational office in any
territory shall be treated as having an establishment in that territory.
Intra -State Supply

Location of Supplier
Location of Supplier of SERVICE means: -
 Where a supply is made from a place of business for which the registration has been
obtained, the location of such place of business;
 Where a supply is made from a place other than the place of business for which
registration has been obtained (a fixed establishment elsewhere), the location of such
fixed establishment;
 Where a supply is made from more than one establishment, whether the place of
business or fixed establishment, the location of the establishment most directly
concerned with the provision of the supply; and
 In absence of such places, the location of the usual place of residence of the supplier
Principal Place of Business means :-
 The place of business specified as the principal place of business in the certificate of
registration;
Fixed Establishment means :-
 a place (other than the registered place of business) which is characterised by a sufficient
degree of permanence and suitable structure in terms of human and technical resources
to supply services, or to receive and use services for its own needs;

Where there is Movement of Goods:
Supply Place of Supply
Involves movement of goods, whether by
supplier or the recipient or any other person
Location of the goods at the time at which
the movement of goods terminates for
delivery to the recipient
Goods are delivered by the supplier to a
recipient or any other person on the
direction of a third person, 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
Place of Supply of Goods

Where supply doesn’t involve movement of goods:
No movement of goods, whether by supplier
or the recipient or any other person
Location of the goods at the time of delivery
to the Recipient
Where the goods are assembled or installed
at site
Place of such installation or assembly
Imports and Exports of Goods:
Goods imported into India Location of Importer
Goods exported from India Location outside India

Goods Supplied on a Vessel/Conveyance
Goods are supplied on board a
conveyance, including a vessel, an
aircraft, a train or a motor vehicle
location at which such goods are taken on
board.
Note:- Where the place of supply of goods cannot be determined, the place of supply
shall be determined in such manner as may be prescribed (Prescribed
process has not been notified till date)

What shall be the place of supply in case of an Immovable Property?
 Supply of services directly in relation to an immovable property, including services by:
1. Architects, Interior Decorators, Surveyors, Engineers and other related experts or
Estate Agents
2. Grant of rights to use immovable property or for carrying out or co-ordination of
construction work;
3. Lodging accommodation by a hotel, inn, guest house, home stay, club or campsite,
including a house boat or any other vessel
4. Organising 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
 Shall be the location at which the immovable property or boat or vessel, as the case
may be, is located or intended to be located.
Note: If the location of the immovable property or boat or vessel is located or intended to be located
outside India, the place of supply shall be the location of the recipient.
Place of Supply of Services- Within India

What shall be the place of supply in case of an Immovable Property
under following condition?
Condition: Where the immovable property or boat or vessel is located in more than one
State or Union Territory: -
Place of Supply:
 Supply of service shall be treated as made 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.

What shall be the Place of Supply in following Specified services?
 Services of:
 Restaurant & Catering service
 Personal Grooming
 Fitness, Beauty Treatment
 Health Service
Location where such services are actually
performed
Services provided by admission to:
 Cultural, artistic, sporting, scientific,
educational, entertainment event
 Amusement Park or any other such
place
 Place where the event is actually held
 Place where the Park or such other place is
located.
 Training & Performance Appraisal Registered person
• Location of such
person
Unregistered person
• Location where services
are actually performed

What shall be the place of supply in case of Organization of an Event?
Services provided by:
 Organisation of a cultural, artistic,
sporting, scientific, educational or
entertainment event
 Supply of services in relation to a
conference, fair, exhibition,
celebration or similar events
 Services ancillary to organisation of
any of the events
 Assigning of sponsorship to such
events
Registered person
• Location of such
person
Unregistered person
• Place where event is
actually held
Note: Where the event is held in more than one state / UT and a consolidated amount is charged for supply of service
relating to such event, place f supply of such service shall be taken as being in each of the respective States/ UT in
proportion to the value for services separately collected or determined in terms of contract/ agreement entered into.

What shall be the place of supply in case of Transportation of goods and passengers?
Goods transportation by mail
or courier to:
Registered person
 Location of such
person
Unregistered person
 Location at which such goods
are handed over for their
transportation.
Passenger transportation
service to:
Registered person
person
Unregistered person
 Place where the passenger
embarks on the conveyance for
a continuous journey*
Supply of service on board a
conveyance, including a
vessel, an aircraft, a train or a
motor vehicle
Location of the first scheduled point of departure of that
conveyance for the journey
*Note: The return journey shall be treated as a separate journey, even if the right to passage for onward and return
journey is issued at the same time.

What shall be the place of supply in case of Transportation of goods and
passengers in certain conditions?
Condition: 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: -
Place of Supply: it shall be determined on following provisions:
1. Made to Registered person- Location of such person
2. Made to Unregistered person-
a. Where the address on record exists- Location of the Recipient
b. In other Cases- Location of the Supplier.

Telecommunication
service
Fixed
Telecommunication
Place of
Installation
Mobile
connection
Post-paid
basis
Location of billing
address of the
recipient of services
on the record of the
supplier of services
Pre-payment
basis
Through a
selling agent or
a reseller
Address of the
selling agent
or re-seller
By any person
to the final
subscriber
Location where such
prepayment is
received or such
vouchers are sold
In other cases
such as online
voucher
Address of the
recipient shall
be place of
supply of
such service.

What shall be the place of supply in case of Banking and Insurance Services?
Banking and other financial
services, including stock
broking services to any person
Location of the recipient
of services on the
records of the supplier
of services:
If location of recipient not
available- location of the supplier
of services.
Insurance services Registered person
person
Unregistered person
 Place where the location of the
recipient of services on the
records of the supplier of
services.
Advertisement services to the
Central Government, State
Government, Statutory Body or
Local Authority
Shall be taken as being in each of such States or UT and
the value of such supplies specific to each State or UT shall
be in proportion to the amount attributable to services
provided by way of dissemination in the respective States or
UT as may be determined in terms of the contract or
agreement entered into in this regard

The Place of Supply for ALL OTHER SERVICES not specified in earlier slides shall be:
Place of Supply: It shall be determined on following provisions:
1. Made to Registered person- Location of such person
2. Made to Unregistered person-
a) Where the address on record exists- Location of the Recipient*
b) In other Cases- Location of the Supplier.
Location of Recipient of SERVICE means: -
 Where a supply is received at a place of business for which the registration has been
obtained, the location of such place of business;
 Where a supply is received at a place other than the place of business for which
registration has been obtained (a fixed establishment elsewhere), the location of such
fixed establishment;
 Where a supply is received at more than one establishment, whether the place of
business or fixed establishment, the location of the establishment most directly
concerned with the receipt of the supply; and
 In absence of such places, the location of the usual place of residence of the recipient.

Place of Supply of Services- Outside India
(Either location of recipient or location of supplier is outside India)
What shall be the Place of supply in case of service in respect of making goods
available to the Recipient?
 Service in respect of goods which are required to be made available Physically - Place of
supply shall be the location where the services are actually performed.
 Service in respect of goods which are required to be made available electronically- Place
of supply shall be the location where goods are situated at the time of supply of service.
 Service in respect of goods supplied to an Individual, where the Recipient of supply of
service or any other person acting on his behalf is required to be physically present with
the supplier- Place of supply shall be the location where the services are actually
performed.
Note: The above point shall not apply when goods are imported into India for repairs and exported after repairs without
putting it to any other use in India.

What shall be the place of supply in case of an Immovable Property?
 Supply of services directly in relation to an immovable property, including services by:
 Experts and Estate agents
 Interior decorators
 Architect
 Engineers and other related experts or estate agents
 Grant of rights to use immovable property or for carrying out or co-ordination of
construction work;
 Lodging accommodation by a hotel, inn, guest house, home stay, club or campsite,
etc
 Shall be the location at which the immovable property is located or intended to be
located.

What shall be the place of supply in case of Organization and Admission to an
Event?
 Place of supply of services supplied by way of admission to, or organisation of a:
 Cultural, artistic, sporting, scientific, educational or entertainment event, or
 A celebration, conference, fair, exhibition or similar events, and
 Services ancillary to such admission or organisation,
 shall be the place where the event is actually held.
Note:
1. Where the above mentioned services are 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.
2. Where the above-mentioned services are supplied in more than one State/ UT, place of supply of
such services shall be taken as being in each of respective States/ UT and value of such supplies
shall be in proportion to the value for services separately collected or determined in terms of the
contract or agreement. In the absence of such contract or agreement, on such basis as may be
prescribed. (Prescribed process has not been notified till date)

What shall be the place of supply in following cases: -
 Services by a banking company, or a financial institution,
or a non-banking financial company, to account holders
Location of the Supplier of
Service
 Intermediary Services
 Services consisting of hiring of means of transport,
including yachts but excluding aircrafts and vessels, up
to a period of one month
 Transportation of Goods other than by way of mail or
courier
Place of Destination of
such goods

What shall be the place of supply in following cases: -
 Transportation Passenger Service Place where the passenger embarks
on the conveyance for a continuous
journey.
 Services provided on board a conveyance during
the course of a passenger transport operation,
including services intended to be wholly or
substantially consumed while on board
First scheduled point of departure of
that conveyance for the journey
 Online Information and Database Access or
Retrieval Services
Location of Recipient of service*
The Place of Supply for ALL OTHER SERVICES not specified in earlier slides shall
be the Location of the Recipient of services.
*Refer next slide

In case of Online Information and Database Retrieval service the Location of Recipient of
services shall be deemed to be located in the taxable territory, if any two of the following non-
contradictory conditions are satisfied:
1. The location of address presented by the recipient of services through internet is in the
taxable territory
2. The 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;
3. The billing address of the recipient of services is in the taxable territory;
4. The internet protocol address of the device used by the recipient of services is in the
taxable territory
5. The bank of the recipient of services in which the account used for payment is maintained
is in the taxable territory
6. The country code of the subscriber identity module card used by the recipient of services is
of taxable territory
7. The location of the fixed land line through which the service is received by the recipient is
in the taxable territory.

THANK YOU
FOR ANY QUERIES KINDLY CONTACT OUR GST TEAM :
ASIJA & ASSOCIATES LLP
CHARTERED ACCOUNTANTS
H.O. : 34/5 , GOKHALE MARG, LUCKNOW
PH. NO. : 0522-4004652,2205072
gst@asija.in
CA Ashish Kapoor
Partner
(ashish.kapoor@asija.in)
CA Rahul Mishra
Partner
(rahul.mishra@asija.in)
CA Amber Agrawal
Associate Director
(amber.agrawal@asija.in)

DISCLAIMER
This presentation has been prepared to provide a gist of the applicable law pertaining to
GST as issued till date. (20/09/2017)
For detailed insight and for better understanding of the various provision of the law,
the said presentation should be read along with related provision of CGST Act, IGST Act,
SGST Act & related rules.
We shall not be responsible for any decision taken on the basis of the said presentation,
without obtaining our professional guidance or consultation on the matter for which
reliance was made on this presentation.”

Place of Supply under GST

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