Place of Supply in GST u/s 10,11 & 12 of IGST Act, 2017

• Need for Determination of Place of Supply

GST is destination based tax i.e., consumption tax, which means tax will be levied where goods and services are consumed and will accrue to that state. 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. The reasons why an accurate determination of place of Supply is important for business

• What is Place of Supply in GST

Place of supply is that place for determining the right GST to be charged on Invoice like IGST or CGST and SGST/UTGST to be charge

• Types of Place of Supply

1) Place of Supply of Goods u/s 10 of IGST Act, 2017

2) Place of Supply of Goods imported into or exported from India  u/s 11 of IGST Act, 2017

3) Place of Supply of Services u/s 12 of IGST Act, 2017

• Place of Suppy of Goods u/s 10 of IGST Act, 2017

Location of the goods at the time at which the movement of goods terminates for delivery to the recipient.

Example:

Mr. C of Chennai received purchase order from Mr. H of Hyderabad for want of commercial goods. Now supply involves movement of goods by supplier from Chennai to Hyderabad in a truck by road.

Ans. Place of Supply-Hydrabad -IGST Levy (Goods Terminate)

Example:

M/s Karina Ltd. incorporated in Mumbai and own a godown in Chennai. Mr. M of Mumbai approached M/s Karina Ltd. of Mumbai for purchase of goods lying in godown at Chennai. Mr M further informs that he does not want delivery of goods in Mumbai. M/s Karina Ltd. issues invoice for sale of goods in Mumbai.

Ans.  Place of Supply-Channai -IGST Levy (Goods Terminate)

• Place of Supply of Goods imported into or exported from India  u/s 11 of IGST Act, 2017

Deemed Inter State Supply if Goods imported into or exported from India

• Place of Supply of Services u/s 12 of IGST Act, 2017

1. Place of supply of services – Default Section 12(2) if section 12(3) to 12(14) not applicable

2.A. Place of supply of services directly in relation to an immovable property [Sec. 12(3)(a) of IGST Act, 2017]

 2.B.Place of supply of services by way of lodging accommodation by a [Sec. 12(3)(b) of IGST Act, 2017]

2.C.Place of supply of services by way of accommodation in any immovable property for organizing [Sec. 12(3)(c) ofIGST Act, 2017]

3. Place of supply of services in relation to [Sec. 12(4) of IGST Act, 2017]

4. Place of supply of services in relation to training and performance appraisal [Sec. 12(5) of IGST Act, 2017]:

5. Place of supply of services provided by way of admission to a [Sec. 12(6) of IGST Act, 2017]:

6. Place of supply of services provided by way of organization of a [Sec. 12(7) of IGST Act, 2017]:

7. Place of supply of services by way of Transportation of goods including by mail or courier [Sec. 12(8) of IGST Act, 2017]:

8. Place of Supply of passenger transportation service to [Sec 12(9) of IGST Act]:

9. Place of Supply of service on board a conveyance [Sec 12(10) of IGST Act]:

10. Place of supply of telecommunication services [Sec 12(11) of IGST Act]:

11. Place of Supply of banking and NBFC service including Stock broking services [Sec 12(12) of IGST Act]:

12. Place of supply of insurance services [Sec 12(13) of IGST Act]:

13. Place of supply of advertisement services to specified persons [Sec 12(14) of IGST Act, 2017]