Place of supply under gst

Place of Supply Under
GST
CA Divakar Vijayasarathy

Credits & Acknowledgements
Anand N Krishna
CA Jugal Narendra Gala

Presentation Schema
Introduction
Place of Supply of
Goods – Sec 10
Supply involving
Movement of Goods
Supply not involving
Movement of Goods
Place of Supply of
Goods Imported into
or Exported from
India – Sec 11
Place of Supply in
case of Domestic
Services – Sec 12
Place of Supply in
case of International
Services – Sec 13

Presentation Schema
GST Goods and Service Tax
OIDAR Online Information and Database Access or Retrieval Services
UT Union Territories

Introduction
GST is a destination based tax, i.e, the goods or 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
The place of supply provisions determine the taxable jurisdiction where the tax should
reach and ascertains whether the supply is inter-state supply or intra-state supply

Location of Recipient
S.No Case Location of Recipient of Service
1 Supply is received at a registered place of business Such place of business
2 Supply is received at a place other than the registered
place of business (a fixed establishment elsewhere)
Such fixed establishment
3 Supply is received at more than one establishment,
whether the place of business or fixed establishment
Location of the establishment most
directly connected with the receipt of
the supply
4 In absence of such places Location of the usual place of
residence of the recipient
S.No Case Location of Recipient of Service
1 Supply is made from a registered place of business Such place of business
2 Supply is made from a place other than the registered
place of business (a fixed establishment elsewhere)
Such fixed establishment
3 Supply is made from more than one establishment,
whether the place of business or fixed establishment
Location of the establishment most
directly connected with the provision
of the supply
4 In absence of such places Location of the usual place of
residence of the supplier
Location of Supplier

Place of Supply of Goods –
Sec 10

Supply Involving Movement of Goods
• The place of supply is the location of the goods at the time when the movement of goods terminates
for delivery to the recipient
Illustration: Mr. A from Kerala, sells 10 air conditioners to Mr. D in Pune for delivery at D’s place of
business in Pune. So the place of supply in this case is Pune
• Where goods are delivered by the supplier to the recipient at the instruction of the buyer (third
person), the place of supply is the principal place of business of the buyer and not of the actual
recipient
Supplier A
(Maharashtra)
Recipient C
(New Delhi)
Buyer B
(Haryana)
Deemed to be Received by
Gives instruction to
Goods delivered as per
the instruction of B Place of Supply: Location of
principal place of business of B
i.e., Haryana

Supply Not Involving Any Movement
• The place of supply is the location of goods at the time of delivery to the recipient
Illustration: Mr. A (New Delhi) has leased his machine to Mr. B (Uttar Pradesh) for production of goods.
After 2 years, Mr. B requested Mr. A to sell the machine to him, which is agreed to by Mr. A. In this case,
there will be no movement of goods and the same will be sold on as is where is basis.
Thus, the location of the machine at the time of such sale will be the place of supply i.e, Uttar Pradesh
• For supply of goods which are to be installed or assembled at site, the place of supply is the place of
such installation or assembly
Illustration: Mr. H (Kerala) has purchased a machine from Mr. T (Karnataka) for being installed in his
factory at Kerala. So the place of supply is the place at which the machine is being assembled i.e, Kerala
• The place of supply of goods supplied on a board a conveyance like aircraft, train, vessel, motor vehicle
is the location where such goods have been taken on board
Illustration: Mr. X (Tamil Nadu) boards the Chennai-Goa train at Chennai. He sells the goods taken on
board by him (at Tamil Nadu), in the train, at Bangalore during the journey.
The place of supply of goods is the location at which the goods are taken on board i.e., Tamil Nadu and not
the place where they have been sold i.e, Bangalore

Place of Supply of Goods
Imported into or Exported
from India – Sec 11

Imports and Exports
• If the goods have been imported in India, the place of supply of goods is the place where the importer
is located
Mr. A
(India)
Mr. B
(Germany)
IMPORT OF CARS
Place of Supply is India
• The place of supply in case of export of goods is the place where they have been exported i.e, the
destination outside India
Mr. H
(India)
Mr. L
(Italy)
EXPORTS SPICES
Place of Supply is Italy

Place of Supply in case of
Domestic Services – Sec 12

Domestic Services
Domestic Service is the
type of service
where the supplier and
the recipient of the
supply
are both situated in India

General Rule
Nature of Supply Place of Supply
Recipient is Registered Recipient is Unregistered
Address of such person
is available in the
records of the supplier
Other cases
General Rule Location of Recipient Such location of
unregistered person
Location of the supplier
of services
The above rule is applicable only if the supply of service does not fall
in any of the specific cases provided under section 12 (explained in
subsequent slide)

Services in relation to Immovable Properties
Nature of Service Location of Immovable
Property/Boat/Vessel
Place of Supply
Services provided directly in relation to an immovable property
including those by architect, engineer, surveyor, estate agent
etc.
IN INDIA
OUTSIDE INDIA
Location of such
immovable
property/ boat/
vessel
Location of the
Recipient
Grant of rights to use immovable property
Services provided by way of lodging, accommodation by a
hotel, inn, homestay, house boat etc.
Services provided by way of accommodation in an immovable
property for organizing marriage, functions etc.
Services ancillary to the above cases
Where the immovable property or boat or vessel is located in more than one State/UT, the service is deemed
to have been supplied in each of the respective States/UT, in proportion to the value for the services
determined in terms of the contract or agreement entered into in this regard

Illustrations
• Mr. G (Kerala) availed the services of an architect Mr. H (Tamil Nadu) for drawing up a blueprint for the
factory i.e, immovable property to be erected by G in Karnataka. The place of supply in this case would
be the place at which the factory is intended to be constructed i.e. Karnataka
• Mr. R, a consultant (New Delhi) travels to Mumbai for business and stays in a hotel there. The place of
supply of accommodation service is the place where the hotel is located i.e., Mumbai
• A hotel chain X charges a consolidated sum of Rs.30,000/- for stay in its two establishments in Delhi
and Agra, where the stay in Delhi is for 2 nights and the stay in Agra is for 1 night.
• The place of supply in this case is both in the UT of Delhi and in the State of Uttar Pradesh and the
service shall be deemed to have been provided in the UT of Delhi and in the State of Uttar Pradesh
in the ratio 2:1 respectively.
• The value of services provided will thus be apportioned as Rs.20,000/- in the UT of Delhi and
Rs.10,000/- in the State of Uttar Pradesh.

Supply by way of Transportation
Supply of services in relation to
training and performance
appraisal
• Registered Recipient - Location of such recipient
• Unregistered Recipient - Location where the service is
actually performed
Nature of Supply Transported Place of Supply
Recipient is Registered Recipient is
Unregistered
Supply of services by
way of transportation
of goods, including by
mail or courier, etc.
WITHIN INDIA Location of Recipient Location at which such
goods are handed
over for their
transportation
OUTSIDE INDIA Location of destination of the goods
Illustration: M/s JKL Pvt. Ltd. is a registered company in Chennai. It ships goods to its customer in
London, United Kingdom through M/s Strong Logistics, a shipping company. The goods being
transported outside India, the place of supply is the location of destination of such goods i.e.,
London, (UK)

Restaurant Services
Supply of Restaurant service,
personal grooming/fitness/
beauty and health services
Location where such services are actually performed
Illustration: Mr. A, a business man from Pune dines in a restaurant at Mumbai while on a business
trip. The place of supply of restaurant service is the location where such service is performed
i.e., Mumbai.

Organisation of Events
If the event is held in more than one State/UT and a consolidated amount is charged for services relating to such
event, the place of supply of such services is deemed to be in each of the respective States/UT in proportion to the
value for services determined in terms of the contract or agreement entered into in this regard
Nature of Supply Service
Provided
Registered/Unregistered
recipient
Place of Supply
Organization of events or services
ancillary to the same /
assigning sponsorship to such events
and services ancillary to the above
IN INDIA Registered
Unregistered
Location of
recipient
Location of event
OUTSIDE
INDIA
Registered
Unregistered
Location of
recipient

Illustrations
• An event management company E has to organize some promotional events in States S1 and S2 for a recipient R
(registered and having principal place of business in Maharashtra). 3 events are to be organized in S1 and 2 in S2. R
has no other establishments in States S1 and S2.
• Regardless of the location of the events being in different states, the place of supply is the place where the recipient
is located i.e. Maharashtra.
• An event management company E has to organize some promotional events for ABC Ltd in Germany.
• The place of supply in this case would be the location of the recipient i.e, Germany since the service is
provided outside India.

Admission to Events/ Amusement Parks etc
Place of Supply
Services provided by way of
admission to cultural,
sporting, educational, artistic
event etc.
Services provided by way of
admission to amusement
park or any other place
Services ancillary to the
above services
Place where the
event is actually
held or where the
park or such other
place is located
Illustration: Mr. A, a resident of Chennai, Tamil Nadu, buys a ticket for a circus organized at Mumbai,
Maharashtra by a circus company based in New Delhi. The place of supply is the location where the
circus is located i.e, Maharashtra

Passenger Transport Services
Illustration:
• Mr. S, an unregistered person, based in Chennai, Tamil Nadu books a two-way air journey ticket from
Chennai to Mumbai on 5th February. He leaves Chennai on 10th February in a late-night flight and
lands in Mumbai the next day. He leaves Mumbai on 14th February in a morning flight and lands in
Chennai the same day.
• The return journey is treated as a separate journey, even if the tickets for onward and return journey
are issued at the same time
• Thus, being an unregistered person, the place of supply for the outward and return journeys are the
locations where the unregistered person embarks on the conveyance for the continuous journey i.e.,
Chennai and Mumbai respectively
Registered Recipient Unregistered Recipient
Passenger transportation
Location of Recipient
Location where the passenger embarks on the
conveyance of continuous journey
Issue of right to passage for
future use - point of boarding
not known at the time of issue
of right
If address of
recipient available,
Location of
recipient
In other cases,
Location of supplier

Telecommunication Services
• Illustration: A company T installs a leased circuit between the Chennai, Bengaluru and Mysuru offices of a
company C. The starting point of this circuit is in Chennai and the end point of the circuit is in Mysuru. The
circuit also connects Bengaluru.
• Hence, one point of this circuit is in Tamil Nadu and two points in Karnataka. The place of supply of this service
is in the States of Tamil Nadu and Karnataka.
• The service shall be deemed to have been provided in the ratio of 1:2 in the States of Tamil Nadu and
Karnataka, respectively
Service Involving Place of Supply
Fixed telecommunication line,
leased circuits, internet based
circuits, cable or dish antenna etc
Location of such fixed equipment
Mobile/ Internet post-paid
services
Location of billing address of the
recipient (even if the actual
address is different). If unavailable,
location of the supplier
Sale of pre-paid vouchers Location of sale of such vouchers
Other cases Address of the recipient in records
If the leased circuit is installed in
more than one State/UT and a
consolidated amount is charged for
supply of services, the place of
supply is deemed to be in each of
the respective States/UT in
proportion to the value for services
determined in terms of the contract
or agreement entered into in this
regard

On-Board Services and Banking Services
• The place of supply for services supplied on board a conveyance (like paid food items, purchase of gadgets,
wi-fi, etc.) is the location of the first scheduled point of departure of that conveyance of journey
• Illustration: Mr. X is travelling from Delhi to Mumbai in an Airjet flight. He desires to watch an English movie
during the journey by making the necessary payment. The place of supply of such service of showing ‘movie
on demand’ is the first scheduled point of departure of the conveyance for the journey i.e., Delhi
• The place of supply of insurance, banking and other financial services, including stock broking
services to any person is the location of the recipient in the records of the supplier.
• However, if the location of recipient of services is not available in the records of the supplier, the
place of supply is the location of the supplier of services
Illustration: Mr. C from Varanasi, Uttar Pradesh, visits a bank registered in New Delhi for getting a
demand draft made. Mr. C does not have any account with the said bank. Therefore, since the location
of recipient is not available in the records of the supplier, the place of supply is the location of the
supplier of services i.e., New Delhi

Advertisement Service to Government
The place of supply for advertisement service to
the CG/ SG/ Statutory body/ Local authority meant for the State/UT identified
in contract or agreement
would be each of such States/UT where the advertisement is broadcasted/
run/played/disseminated
The value of such supplies specific to each State/UT is in proportion to the amount attributable to the
services provided by way of dissemination in the respective States/Union territories determined in terms
of the contract or agreement entered into in this regard
• Illustration: As a part of the campaign ‘Swachh Bharat’, ABC (a local authority) has engaged a company GH
for printing of 1,00,000 pamphlets (at a total cost of Rs.1,00,000) to be distributed in the States of
Haryana, Uttar Pradesh and Rajasthan.
• In such a case, ABC should ascertain the breakup of the pamphlets to be distributed in each of the three
States i.e., Haryana, Uttar Pradesh and Rajasthan from the Ministry or department concerned at the time
of giving the print order.
• Let us assume that this breakup is 20,000, 50,000 and 30,000 respectively. This breakup should be
indicated in the print order.
• The place of supply of this service is in Haryana, Uttar Pradesh and Rajasthan. The ratio of this breakup
i.e., 2:5:3 will form the basis of value attributable to the dissemination in each of the three States.
Separate invoices will have to be issued State-wise by GH to ABC indicating the value pertaining to that
State, i.e., Rs.20,000 - Haryana, Rs.50,000 - Uttar Pradesh and Rs.30,000 - Rajasthan

Place of Supply in case of
International Services –
Sec 13

International Services
International Service is
the type of service
Where either the
supplier or the recipient
of the supply
is situated outside India

General Rule
Location of Recipient is
available
Location of Recipient is
not available
General Rule Location of Recipient of
services
Location of the supplier
of services
The principal exceptions to the above general rule relating to place of supply of cross border services are:
• Performance-based services
• Services directly in relation to immovable property
• Admission to and/or organization of events, celebrations etc.
• Services supplied by a banking company, financial institution, non- banking financial company (NBFC) to account
holders
• Intermediary services
• Hiring of means of transport other than aircrafts and vessels except yachts, up to a period of one month
• Transportation of goods, other than by way of mail or courier
• Passenger transportation services
• Services on board a conveyance during the course of a passenger transport operation
• Online information and database access or retrieval services

Performance-Based Services
• The place of supply for goods that are temporarily imported into India for repairs or for any other treatment or
process and are exported after such repairs/treatment/process, without being put to any other use in India, is
the location of the recipient.
• The place of supply of services supplied in respect of goods, that are provided from a remote location by
electronic means, is the location where the goods are situated at the time of supply of services.
S.No Nature of Supply Place of Supply
1 Services requiring physical presence of goods Location where service is performed
2 Services supplied to an individual, which require the physical
presence of the recipient
Location where the service is actually
performed
3 Services at 1 and 2 above supplied at more than one taxable
territory (refer illustration)
Location in the taxable territory
4 Services at 1 and 2 supplied in more than one State/UT (refer
illustration)
Each State/UT
Exception to 1 above

Illustrations
• A software company located in United States of America (USA) takes services of a software company located in
Bangalore to service its software in USA.
• The Indian software company provides its services through electronic means from its office in India. The place
of supply is the location where goods are situated at the time of supply of service i.e., USA
• ABC Ltd., Hyderabad has exported a machine to a company in Indonesia.
• The machine stops functioning and is thus, imported by ABC Ltd. for free repairs in terms of the sale
contract.
• The machine is exported after repairs. The place of supply of repair service is the location of the recipient i.e.,
Indonesia
• PQR Consultants, New Delhi, bags a contract for doing a market research for a vehicle manufacturing company
based in South Korea, in respect of its upcoming model of a car.
• The research is to be carried out in five countries including New Delhi in India.
• Since the services are supplied at more than one location including a location in the taxable territory, the place
of supply for research carried out in New Delhi shall be the location in the taxable territory i.e., New Delhi
• LMN Consultants, UK provides market research services for a vehicle manufacturing company in India.
• The research is to be carried out in 3 states viz., Tamil Nadu, Kerala and Karnataka. And the proportionate
value of services provided as per the contract is 2:2:1
• So the place of supply would be Tamil Nadu, Kerala and Karnataka valued as per the agreed proportion

Services in relation to Immovable Properties
Nature of Service Place of Supply
Services provided directly in relation to an immovable property including
those by architect, engineer, surveyor, estate agent etc.
Location of the
immovable property
Grant of rights to use immovable property
Services provided by way of lodging, accommodation by a hotel, inn,
homestay, house boat etc.
Services provided by way of accommodation in an immovable property for
organizing marriage, functions etc.
Services ancillary to the above cases
Above services supplied at more than one location, including a location in
the taxable territory (refer illustration)
Location in the taxable
territory
Above services supplied in more than one State/UT (refer illustration) Each of the State/UT
• Illustration: Mr. C, an architect (New Delhi), enters into a contract with Mr. Z of New York to provide professional services
in respect of immovable properties of Mr. Z located in Pune and New York.
• Since the immovable properties are located in more than one location including a location in the taxable territory, the
place of supply for professional services provided in Pune shall be the location in the taxable territory i.e., Pune.
• Had the service been provided only in Pune and Delhi, the place of supply would be Pune and Delhi valued as per the
terms of the contract

Admission to and/or Organisation of Events
Services provided by way of admission to cultural, sporting, educational,
artistic event, etc.
Place where the event is
held
Services provided by way of admission to amusement park or any other
place
Services ancillary to the above services
Above services supplied at more than one location, including a location in
the taxable territory (Refer illustration)
Location in the taxable
territory
Above services supplied in more than one State/UT Each of the State/UT
• Illustration: An event management company registered in New Delhi organizes an art exhibition displaying
works of an international painter based in Dubai.
• The exhibition is organized in 3 countries including New Delhi.
• Since the service is supplied at more than one location including a location in the taxable territory, the place of
supply for event management services in New Delhi shall be the location in the taxable territory i.e., New
Delhi

Banking and Financial Services, Intermediary
Services and Hiring of means of transport
Services supplied by a banking company, or a
financial institution, or a non-banking financial
company, to account holders
Location of
supplier of
services
*Intermediary Services
Services consisting of hiring of means of transport,
including yachts but excluding aircrafts and
vessels, up to a period of 1 month
• *Intermediary means a broker, an
agent or any other person who
• arranges or facilitates the supply
of goods or services or both
• between two or more persons,
but does not include a person
• who supplies such goods or
services or both or securities on
his own account
• Illustration: Mr. D, an unregistered person based in New Delhi hires a yacht from a company based in London, UK
for 20 days. The place of supply is the location of the supplier of services i.e., London. Had the stay been more
than 30 days, the place of supply might be the location of the recipient of the supply (not expressly mentioned
under GST laws).
• Illustration: A travel agent, on behalf of a company registered in New Delhi, books a tour of famous Indian cities
for a Dubai resident. The place of supply is the location of the supplier of services i.e., New Delhi

Transportation Services
Transportation of goods, other than by way of mail or courier Destination of such goods
Passenger transportation services Place where the passenger embarks
on the conveyance for a continuous
journey
Services provided on board a conveyance during passenger
transportation including services intended to be wholly or
substantially consumed while on board
First scheduled point of departure of
that conveyance for the journey
• Illustration: A shipping line, Mumbai, Maharashtra transports a shipment of flowers from Mumbai to Paris, for an
event management company based in Paris. The place of supply is the location of destination of goods
transported i.e., Paris
• Illustration: Mr. A, a foreign tourist, has booked a ticket for India-Indonesia flight from an airline registered in
New Delhi for a journey with a stopover in Thailand. The place of supply provided in the flight from Delhi to
Thailand is the place where the passenger embarks on the conveyance for a continuous journey i.e., New Delhi
• However, the place of supply provided in the flight from Thailand to Indonesia would be Thailand and would not
be covered under the ambit of the Indian GST laws.

OIDAR Services
• The place of supply of OIDAR is the location of the recipient of services. However, it is difficult to
determine the location of the recipient in case of OIDAR as such recipients normally access the
services online and are not required to disclose their location
• On satisfying any 2 conditions of the following 7 conditions, the service recipient is deemed to be
located in the taxable territory i.e., India
OIDAR services means
services whose delivery is
mediated by information
technology over the
internet or
an electronic network and
the nature of which renders
their supply essentially
automated
and involving minimal
human intervention and
impossible to ensure in the
absence of information
technology (E.g.: Netflix,
Amazon Prime etc.)
Recipient gives an
Indian address
through internet
Payment is settled by
an Indian credit
card/debit card/other
card
Recipient has an
Indian billing address
Computer/other
device used by the
recipient has an Indian
IP address
Recipient uses an
Indian bank account
for payment
Country code of the
subscriber identity
module card used by
the recipient of
services is of India
Recipient receives the
service through an
Indian fixed land line

Illustration
Mr. D from New Delhi avails streaming services from Amazon US
Mr. D settles the payment for the services using an Indian credit
card
The billing address given by him is his place of residence in New
Delhi
The place of supply in this situation would be the location of the
recipient of the service i.e, New Delhi since 2 of the 7 conditions
are satisfied

Thank You!
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