This document discusses the key provisions around determining the place of supply of services under the Goods and Services Tax (GST) in India. It notes that Section 6 of the Integrated GST Act lays out rules for determining the place of supply for inter-state trade. Generally, the place of supply for business-to-business services is the location of the service recipient. For other recipients, it is either their address on record with the supplier or the supplier's location. Specific rules are also provided for various service categories like immovable property, transportation, telecom and more.

1. Volume XVI Part 6 September 25, 2016 13 Business Advisor
Place of supply of services for inter-state
GST
Dr Sanjiv Agarwal
Determination of place of supply of services is
important for goods and service tax. Section 3 and 3A
of IGST Act lays down principles for determining
supply of goods and/ or services in the course of inter-
state and intra-state trade or commerce. These
provisions are subject to section 6 on place of supply
of services.
Two terms are important for determination of place of
supply of services, viz. „service‟ and „supply‟. „Service‟
in terms of section 2(88) of GST Act means anything other than goods.
„Supply‟ is defined in section 3 of the CGST Act, 2016.
„Supply‟ includes-
(i)All forms of supply of goods and/ or services;
(ii) Importation of services;
(iii) Supplies specified in Schedule-I (without consideration);
(iv) Matters to be treated as supply of services as per Schedule-II.
Under the present law, the Place of Provision of Services Rules, 2012 govern
the determination of place of provision of services. These rules shall be
replaced by section (6) of the model law.
Determination of place provision of service (Section 66C)
Section 66C of Finance Act, 1994 seeks to empower the Central Government
Under the present law, the Place of Provision of Services
Rules, 2012 govern the determination of place of provision of
services. These rules shall be replaced by section (6) of the
model law.

2. Volume XVI Part 6 September 25, 2016 14 Business Advisor
to make rules to determine the place of provision of service having regard to
the nature and description of various services.
The Place of Provision of Service Rules shall determine -
• Place where services are provided,
• Place where services are deemed to have been provided, or
• Place where services are agreed to be provided, or
• Place where services are deemed to have been agreed to be provided.
The place of provision of service rules determine the place where the
services shall be deemed to be provided. Its taxability is determined based
on the location of its provision.
Place of supply for IGST
Section 6 deals with determination of place of supply of services. This
contain 13 sub-sections and stipulates different situations in which place of
supply of services shall be ascertained.
In case of B2B (business-to-business) supply of services, the primary factor
for determining the place of supply will be the location of the service
recipient, subject to certain exceptions.
As per sub-section (3), generally place of supply of services made to a
registered person shall be the location of services receiver, except for
services mentioned in sub-sections (4) to (15).
The provisions of section (6) will take into account the present Place of
Provision of Services Rules, 2012 and, as such, no separate rules are likely
to be prescribed.
Unlike the present provisions to determine place of provision of service,
where there is a general rule of destination-based place (recipient) and a
rule prescribing for order of rules to be applied, and a residual rule, section
6 of IGST law contains 15 sub-sections.
While sub-sections 4 to 15 prescribe the determination of place of supply of
specific services, sub-sections (2) and (3) are the general principles for
determination of supply is respect of registered person and other persons
who are not registered persons.

3. Volume XVI Part 6 September 25, 2016 15 Business Advisor
Sub-sections 4 to 15 shall apply to both registered persons and persons
other than registered persons. As per sub-section (1), place of supply of
services shall be determined in terms of section (6).
Registered/ unregistered person
Unlike the present place of provision of service norms, place of supply of
services for IGST shall be determined on the basis of status of person who is
recipient (i.e., whether he is registered or not.
„Registered person‟ is not defined either in CGST law or IGST law but
taxable person has been defined. Going by the definition of taxable person
in section 9 of the GST Act, it includes both registered person and one who
is required to be registered. So, we can assume that for place of supply,
registered person is a taxable person who is registered u/s 19 and
Schedule-III and other than registered person is a taxable person who is
required to be registered but not so registered.
General rule
As a general rule, the place of supply of service shall be determined as
follows –
Sub-
section of
section 6
Supply of service
to
Place of supply Except
2 Registered person Location of recipient
(i.e. registered person)
Services listed in
sub-section 4 to
15 of section 6
3 Any person, other
than registered
person
(i) Location of
recipient where
address on record
exists ;
(ii) In other cases,
location of supplier
Services listed in
sub-section 4 to
15 of section 6
„Address on record‟ is defined in section 2(3) of the GST Act as the address
of the recipient as available in the records of the supplier. The address,
therefore, shall be reckoned as that available with supplier and not as
shown by the recipient. The supplier‟s address on record, if not correct may
pose challenges to both the parties.

4. Volume XVI Part 6 September 25, 2016 16 Business Advisor
Place of supply of specific services
Place of supply of specific services shall be determined as per following
table:
Place of supply of service
Sub-
section
Service Place of supply to
Registered person
Place of supply to
Other person
(4) (a) in relation to an
immovable property,
including services
provided by
architects, interior
decorators,
surveyors, engineers
and other related
experts or estate
agents, any service
provided by way of
grant of rights to use
immovable property
or for carrying out or
co-ordination of
construction work,
or
(b) by way of lodging
accommodation by a
hotel, inn, guest
house, home stay,
club or campsite, by
whatever name
called and including
a house boat or any
other vessel, or
(c) by way of
accommodation in
any immovable
property for
organising any
marriage or
reception or matters
Location at which
the immovable
property or boat or
vessel is located or
intended to be
located.
Location at which
the immovable
property or boat or
vessel is located or
intended to be
located.

5. Volume XVI Part 6 September 25, 2016 17 Business Advisor
related therewith,
official, social,
cultural, religious or
business function
including services
provided in relation
to such function at
such property, or
(d) any services
ancillary to the
services in clause (a),
(b) and (c) above.
(See note 1 below)
(5) The place of supply
of restaurant and
catering services,
personal grooming,
fitness, beauty
treatment, health
service including
cosmetic and plastic
surgery
Location where the
services are actually
performed.
Location where the
services are actually
performed.
(6) The place of supply
of services in relation
to training and
performance
appraisal
Location of such
person
Location where the
services are actually
performed
(7) The place of supply
of services provided
by way of admission
to a cultural, artistic,
sporting, scientific,
educational, or
entertainment event
or amusement park
or any other place
and services
ancillary thereto.
Place where the
event is actually held
or where the park or
such other place is
located.
Place where the
event is actually held
or where the park or
such other place is
located.

6. Volume XVI Part 6 September 25, 2016 18 Business Advisor
(8) The place of supply
of services provided
by way of-
(a) organisation of a
cultural, artistic,
sporting, scientific,
educational or
entertainment event
including supply of
service in relation to
a conference, fair,
exhibition,
celebration or similar
events, or
(b) services ancillary
to organisation of
any of the above
events or services, or
assigning of
sponsorship of any
of the above events.
(See Note to below 2)
Location of such
person.
Place where the
event is actually
held.
(9) The place of supply
of services by way of
transportation of
goods, including by
mail or courier
Location of such
person
Location at which
such goods are
handed over for their
transportation.
(10) The place of supply
of passenger
transportation
service
[Where the right to
passage is given for
future use and the
point of embarkation
is not known at the
time of issue of right
to passage, the place
of supply of such
service shall be
Location of such
person
Place where the
passenger embarks
on the conveyance
for a continuous
journey.

7. Volume XVI Part 6 September 25, 2016 19 Business Advisor
determined in the
manner specified in
sub-sections (2) or
(3), as the case may
be.]
(See Note 3 below)
(11) The place of supply
of services on board
a conveyance such
as vessel, aircraft,
train or motor
vehicle.
Location of the first
scheduled point of
departure of that
conveyance for the
journey.
Location of the first
scheduled point of
departure of that
conveyance for the
journey.
(12) The place of supply
of
telecommunication
services including
data transfer,
broadcasting, cable
and direct to home
television services to
any person shall-
(a) in case of services
by way of fixed
telecommunication
line, leased circuits,
internet leased
circuit, cable or dish
antenna.
(b) in case of mobile
connection for
telecommunication
and internet services
provided on post-
paid basis.
(c) in cases where
mobile connection
for
telecommunication
and internet service
are provided on pre-
Location where the
telecommunication
line, leased circuit or
cable connection or
dish antenna is
installed for receipt
of services.
Location of billing
address of the
recipient of services
on record of the
supplier of services;
Location where such
pre-payment is
received or such
vouchers are sold:
Location where the
telecommunication
line, leased circuit or
cable connection or
dish antenna is
installed for receipt
of services.
Location of billing
address of the
recipient of services
on record of the
supplier of services;
Location where such
pre-payment is
received or such
vouchers are sold:

8. Volume XVI Part 6 September 25, 2016 20 Business Advisor
payment through a
voucher or any other
means.
(If such pre-paid
service is availed or
the recharge is made
through internet
banking or other
electronic mode of
payment, the
location of the
recipient of services
on record of the
supplier of services
shall be the place of
supply of such
service.)
(13) The place of supply
of banking and other
financial services
including stock
broking services to
any person.
If the service is not
linked to the account
of the recipient of
services.
Location of the
recipient of services
on the records of the
supplier of services.
Location of the
supplier of services.
Location of the
recipient of services
on the records of the
supplier of services.
Location of the
supplier of services.
(14) The place of supply
of insurance services
Location of such
person
Location of the
recipient of services
on the records of the
supplier of services.
(15) The place of supply
of advertisement
services to the
Central Government,
a State Government,
a statutory body or a
local authority
meant for identifiable
States.
Located in each of
such States and the
value of such
supplies specific to
each State shall be
in proportion to
amount attributable
to service provided
by way of
Located in each of
such States and the
value of such
supplies specific to
each State shall be
in proportion to
amount attributable
to service provided
by way of

9. Volume XVI Part 6 September 25, 2016 21 Business Advisor
dissemination in the
respective States as
may be 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 reasonable
basis as may be
prescribed in this
behalf.
dissemination in the
respective States as
may be 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 reasonable
basis as may be
prescribed in this
behalf.
Note 1
Where the immovable property or boat or vessel is located in more than one
State, the supply of service shall be treated as made in each of the States 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 reasonable basis as
may be prescribed in this behalf.
Note 2
Where the event is held in more than one State and a consolidated amount
is charged for supply of services relating to such event, the place of supply
of such services shall be taken as being in the each of the States in
proportion to the value of services so provided in each State as ascertained
from the terms of the contract or agreement entered into in this regard or, in
absence of such contract or agreement, on such other reasonable basis as
may be prescribed in this behalf.
Note 3
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.
It would, therefore, be obligatory for the supplier/ recipient of service to (i)
get registered, and (ii) identify the category of service [if falling under sub-
sections (4) to (15)] to apply relevant provision failing which section 2 or 3
shall apply.
(Dr Sanjiv Agarwal is Partner, Agarwal Sanjiv & Company, Jaipur.)