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Time and Place of supply in GST

Time and Place of supply in GST

Time and Place of supply in GST
This concept was in vogue in service tax but now with the advent of GST it is important to understand. Please refer to sec 7 to sec 14 of IGST Act
Place of Supply and location of supplier these two terms are relevant here.Place of supply is the place where recipient is located and location of supplier is the place from where Seller is located.
Now following two conditions may be there
Seller and Receiver are in same state then transaction is Intra state hence CGST and SGST will be levied
Seller and Receiver are in different state then transaction is Inter state so IGST will be levied

Business through a branch or agency

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.

Place of Supply in case of movement of goods:

The place of supply of goods, other than supply of goods imported into, or

exported from India, shall be as under,––

(a ) where the supply involves movement of goods, whether by the supplier or

the recipient or by any other person, the place of supply of such goods shall be the

location of the goods at the time at which the movement of goods terminates for

delivery to the recipient

(b ) where the goods are delivered by the supplier to a recipient or any other

person on the direction of a third person, whether acting as an agent or otherwise,

before or during movement of goods, 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 in case of Non movement of goods:

(c ) where the supply does not involve movement of goods, whether by the

supplier or the recipient, the place of supply shall be the location of such goods at the

time of the delivery to the recipient

(d ) where the goods are assembled or installed at site, the place of supply shall

be the place of such installation or assembly

(e ) where the goods are supplied on board a conveyance, including a vessel, an

aircraft, a train or a motor vehicle, the place of supply shall be the location at which

such goods are taken on board.

Place of Supply of Services under various situations are as follows:

( a) directly 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 related thereto, 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 referred to in clauses (a ), (b ) and (c ),

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:

Provided that 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.

Explanation.–– Where the immovable property or boat or vessel is located in more

than one State or Union territory, the supply of services 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

The place of supply of restaurant and catering services, personal grooming, fitness,

beauty treatment, health service including cosmetic and plastic surgery shall be the location where the services are actually performed.

The place of supply of services in relation to training and performance appraisal

to,––

(a ) a registered person, shall be the location of such person;

(b ) a person other than a registered person, shall be the location where the

services are actually performed.

(6 ) The place of supply of services provided by way of admission to a cultural,

artistic, sporting, scientific, educational, entertainment event or amusement park or any

other place and services ancillary thereto, shall be the place where the event is actually held or where the park or such other place is located.

(7 ) 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 services in relation to a conference, fair,

exhibition, celebration or similar events; or

(b ) services ancillary to organisation of any of the events or services referred to

in clause (a ), or assigning of sponsorship to such events,––

(i ) to a registered person, shall be the location of such person;

(ii ) to a person other than a registered person, shall be the place where

the event is actually held and if the event is held outside India, the place of

supply shall be the location of the recipient.

Explanation. ––Where the event is held in more than one State or Union territory

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 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.

(8 ) The place of supply of services by way of transportation of goods, including by

mail or courier to,––

(a ) a registered person, shall be the location of such person;

(b ) a person other than a registered person, shall be the location at which such

goods are handed over for their transportation.

(9 ) The place of supply of passenger transportation service to,—

(a ) a registered person, shall be the location of such person;

(b ) a person other than a registered person, shall be the place where the passenger

embarks on the conveyance for a continuous journey:

Provided that 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 determined in accordance with the provisions of

sub-section (2 ).

Explanation .––For the purposes of this sub-section, 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.

(10 ) The place of supply of services on board a conveyance, including a vessel, an

aircraft, a train or a motor vehicle, shall be the location of the first scheduled point of

departure of that conveyance for the journey.

(11 ) 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, be the location where the

telecommunication line, leased circuit or cable connection or dish antenna is installed

for receipt of services;

(b ) in case of mobile connection for telecommunication and internet services

provided on post-paid basis, be the location of billing address of the recipient of

services on the record of the supplier of services;

(c ) in cases where mobile connection for telecommunication, internet service

and direct to home television services are provided on pre-payment basis through a

voucher or any other means,––

(i ) through a selling agent or a re-seller or a distributor of subscriber

identity module card or re-charge voucher, be the address of the selling agent

or re-seller or distributor as per the record of the supplier at the time of

supply; or

(ii ) by any person to the final subscriber, be the location where such prepayment

is received or such vouchers are sold;

(d ) in other cases, be the address of the recipient as per the records of the

supplier of services and where such address is not available, the place of supply shall

be location of the supplier of services:

Provided that where the address of the recipient as per the records of the supplier

of services is not available, the place of supply shall be location of the supplier of

services:

Provided further that 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 the record of the supplier of services shall be the place of

supply of such services.

Explanation.–– Where the leased circuit is installed in more than one State or Union

territory and a consolidated amount is charged for supply of services relating to such circuit,

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.

(12 ) The place of supply of banking and other financial services, including stock

broking services to any person shall be the location of the recipient of services on the

records of the supplier of services:

Provided that if the location of recipient of services is not on the records of the

supplier, the place of supply shall be the location of the supplier of services.

(13 ) The place of supply of insurance services shall,––

(a ) to a registered person, be the location of such person;

(b ) to a person other than a registered person, be the location of the recipient of

services on the records of the supplier of services.

(14 ) The place of supply of advertisement services to the Central Government, a

State Government, a statutory body or a local authority meant for the States or Union

territories identified in the contract or agreement shall be taken as being in each of such

States or Union territories and the value of such supplies specific to each State or Union

territory shall be in proportion to the amount attributable to services provided by way of

dissemination in the respective States or Union territories 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 basis as may be prescribed.

 
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