Place of Supply under GST Act is very crucial concept because the GST is charged on basis of Place of Supply of goods or Services. Under GST law Tax is payable where goods or services are consumed.

For Example: – if the place of supply of goods or service is located in same State/UT then SGST/UTGST and CGST will be charged.

if the place of supply of goods or services is located in another State/UT then only IGST will be charged.

So, Place of supply is the base which determines the type of GST will be levied (CGST, SGST/UTGST or IGST). GST is Destination base tax. So, in order to determine the destination of consumption of goods & services, Place of supply has to determine.

  In this chapter we will cover following topics: –

    1. Place of Supply of Goods

         1. Supply within India

               1.Place of Supply in cases where goods are moved?

               2. Where are goods not moved?

               3. Supply of Goods on Conveyance?

               4. Supply other than above?       

          2. Supply Outside India 

      2. Place of Supply of Services

      3. Special Provision for supply of online information or database.

1. Place of Supply of Goods

     1. Supply within India

             1. Place of Supply in cases where goods are moved?

           POS shall be the place where movement of goods terminates, it means the last destination of goods where actually goods will have consumed.

We will further explain with following illustrations: –

Illustrations 1.

Mrs Radhika for Hoshiarpur, Punjab sell 10 Pcs of dresses to Mr Rahul from Jalandhar, Punjab

 In that case, Place of supply is Jalandhar, Punjab. It is within the same state (Punjab) so, CGST & SGST will be charged.

As we explained earlier this is Intra-state supply.

Illustrations 2.

If Mrs Radhika for Hoshiarpur, Punjab sell 10 Pcs of dresses to Mr Joy from Patna, Bihar.

In that case, Place of supply is Patna, Bihar. It is outside state (Punjab) so, IGST will be charged.

As we explained earlier this is Inter-state supply.

Illustrations 3.

Mrs Aman for Hoshiarpur, Punjab sell 10 Pcs of handmade antiques to Mr Sahib from Noida, Haryana and Mr Sahib request to Mrs Aman that to send goods to Mr Pawan form Jalandhar, Punjab

 In that case, it will be assumed that the buyer from Noida has received the goods and So, POS is Noida, Haryana. It is outside state (Punjab) so, IGST will be charged.

 This case is similar to E-commerce sale i.e. gifting to someone from an online shop like Amazon, PayTM and Flipkart etc.

Illustrations 4.

Mr Sarb from Hoshiarpur, Punjab sell 10 Pcs of handmade antiques to Mr Abhi from Faridabad, Haryana and Mr Abhi request to Supplier that he will arrange his own transportation and takes goods from Ex-factory.

 In that case, it Supplier will deliver goods to the buyer at their Place Hoshiarpur, Punjab So, Place of supply is Hoshiarpur, Punjab. It is within the state (Punjab) so, CGST & SGST will be charged.

2. Where are goods not moved?

      The goods which are not moved from one place to another like sell Studio setup installed in building the building.

 Illustrations 1.

M/s Happy Movement Studio from Hoshiarpur, Punjab want to open their branch at Gagret, Himachal and they purchased old studio with the whole setup.

             In that case, there is no movement of goods so, Place of supply is a place of goods at the time of delivery. Place of supply is Gagret, Himachal. It is within the state (Punjab) so, CGST & SGST will be charged.

 Illustrations 2.

M/s Happy Movement Studio from Hoshiarpur, Punjab want to open their branch at Parwanoo, Himachal and they ask M/s Studio Maker Ltd. From Kalka, Haryana

                    In that case, there is no movement of goods Because of M/s Studio Maker Ltd. From Kalka, Haryana will build a studio site, Place of supply is a place of the site where they did work. So, Place of supply is Parwanoo, Himachal. It is within the state (Punjab) so, CGST & SGST will be charged.

Note: – M/s Studio Maker Ltd. has to get GSTIN from Parwanoo, Himachal. They can opt register as a casual taxable person. 

3. Supply of Goods on Conveyance?

      In case of travelling by plane or train, the POS is the place from where food loaded in the plane or train.

 Illustrations 1.

Mr Arun travels from Chandigarh to Delhi by plane and he purchases a cold drink while on the plane.

Because plane takes off from Chandigarh So, it was loaded from Chandigarh so POS is Chandigarh. The airline will charge UTGST and CGST on it because in most of the cases all airlines have a pan-India presence and will be registered in all states

    4. Supply other than above

          If the POS cannot be determined by above-prescribed manner then it shall be determined in the manner prescribed by Central Government on the recommendation of GST Council.

 2. Supply Outside India

In the case of Import into India, the place of supply is the location of importer where goods are received.

On Import into India IGST will be charged under GST Law

In the case of Export from India, the POS is a location outside India.

Export from India is fully exempted under GST Law

Time of Supply

To know the due date of payment of the liability of CGST, SGST/UTGST and IGST under GST Law, Frist we have to determine Time of Supply. The GST Law has provided a separate provision to determine the time of supply of goods and services. Section 12,13 & 14 of the CGST Act, 2017 deal with the time of supply of goods and time of supply of services.

1. How to determine the TOS of goods.

Time of supply of goods determined by the following event: –

Earliest of the following: –

1. Date of issue of the invoice by the supplier. (If the invoice is not issued, then the last date on which the supplier is legally bound to issue the invoice with respect to the supply).

OR

2. The date on which the supplier receives the payment: –

1. The date of the supplier records the payment in his books

OR

2. The date on which the payment credited to his bank account.

Example:-

1. Date of issue of an invoice is 21/02/2018
2. Date of receipt of payment in bank account 15/01/2018
3. Date of records the payment in the books of supplier 16/01/2018

Time of Supply will be whichever earliest 15/01/2018 

2. How to determine the TOS of Services.

 Earliest of the following dates:

The Date of issue of the invoice by the supplier (If the invoice is issued within the legally prescribed period under section 31(2) of the CGST Act) or the date of receipt of payment, whichever is earlier?

OR

The Date of the provision of service (If the invoice is not issued within the legally prescribed period under section 31(2) of the CGST Act) or the date of receipt of payment, whichever is earlier?

OR

The date on which the recipient shows the receipt of service in his books of account, in case the aforesaid two provisions do not apply

3. If the payment made in excess of invoice value?

If payment made against an invoice is excess from invoice value up to Rs. 1,000/- than supplier can pay tax on excess payment when the next invoice will be generated for the same party.

For example: –

If Firm “AB Co.” make payment of Rs. 5,000/- on 09/01/2018 to a firm “BC Co.” and “BC Co” supply goods on 21/01/2018 to “AB Co.” and generate the invoice for Rs. 4,400/-. Then the Time of supply of goods is 09/01/2018. The date of the invoice of the next supply to “AB Co.” is 12/02/2018, then the supplier has the option to treat the time of supply of balance amount either 09/01/18 or 12/02/2018. 

4. How to determine the TOS of goods when the tax is to be paid on reverse charge basis?

Whichever is the earliest form following:-

1. The date of receipt of goods.

OR

2. The date on which the recipient recorded the payment in his books.

OR

      The date on which the payment debited from his bank account.

OR

3. The date immediately following 30 days from the date of issue of the invoice. or any other legal document in lieu of invoice by the supplier.

 If we cannot determine the time of supply in an aforesaid manner, then the time of supply will be the date of record of a transaction in the books of accounts of the recipient. 

5. How to determine the TOS of services when the tax is to be paid on reverse charge basis? 

Whichever is the earliest form following:-

1. The date on which the recipient recorded the payment in his books.

OR

      The date on which the payment debited from his bank account.

OR

2. The date immediately following 60 days from the date of issue of the invoice or any other legal document in lieu of invoice by the supplier.

If we cannot determine the TOS in an aforesaid manner, then the time of supply will be the date of record of the transaction in the books of accounts of the recipient. 

6. TOS of goods or services related to an addition to the value of supply by way of interest, late fees or penalty.

     TOS of goods or services related to an addition to the value of supply by way of interest, late fees or penalty will be the date on which supplier receives that additional amount.

Bill of Supply under GST: –

Under GST some following business (registered under GST or not) cannot collect tax on the sale of goods form their customers in these type of cases Bill of Supply under GST is generated by a businessman and in these cases if you are registered under the GST act except 1 from following cases you cannot issue GST Invoice: –

1. If you are a composition dealer under composition scheme.
2. or Exporter.
3. or Supplier of Nil-Rated/Exempted Goods.
4. or Supplier of Non-taxable goods under GST and Non-GST goods and services.

Particulars of Bill of Supply under GST: –

1. Supplier Name, address and GSTIN (If register)
2. Buyer Name, Billing address, and Shipping address.
3. Bill of Supply consecutive number
4. Date of Issue of BOS
5. Items Description: –
   1. Name of Items
   2. HSN Code ^{(Required as per Turnover)}
   3. Quantity
   4. MOU (Measurement of Units)
   5. Rate per Units
   6. Discount (If any)
6. Terms and Condition of supply of Goods (If Any): –
7. Signature or Digital Signature

• Here is Example of Bill of Supply Under GST

Section wise explanation of Bill of Supply: –

We can divide BOS into 4 section as following

1. Header: –   It includes all information about Supplier i. e. Name, Address, GSTIN, contact number, BOS number and Date of BOS.

   

2. Customer Details: –

It includes all information about Customer i.e. Name, Address (Billing as well as Shipping, and contact number.

3. Goods Details: –    It includes all the information about goods i.e. Name, HSN Code, Rate, Units, Discount and etc.

   

4. Footer: – It includes all Terms and conditions, a signature of accountant/ authorized Signatory and etc.

Download Excel Sheet of Bill of Supply 

Download

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Composition scheme under GST(Goods and Services Tax) is a very convenient scheme made for small-scale industries or businesses. In this scheme, the taxpayer has a fixed rate of tax on their aggregate turnover. Any taxpayer can opt this scheme if their aggregate turnover is less than 1.5 Crore or 75 lacs (latest update as per 23^RD GST Council meeting held on 10^th Nov 2017) in North-Easter states and Himachal Pradesh.

Key feature: –

• Fixed Rate of Tax on Aggregate Turnover
• ITC (Input Tax credit) not eligible
• Only eligible for intra-state supplies
• The bill of supply is not a tax invoice.
• Eligibility made on basis of Aggregate supplies
• Monthly Returns are not required file only Quarterly Returns
• Not need to maintain records.
• Single time Tax payment and easy to calculate.
• Reduce the workload on small business who trying to grow.

You can understand much better in an example given below: –

GST Percentage to be payable as per your type of business shown under: –

Who can opt Composition scheme under GST?

      Anyone who can fulfil the following conditions: –

1. Whose aggregate turnover is less than 1.5 Crore or 75 lacs in North-Easter states and Himachal Pradesh?
2. Who is dealing with intra-state supplies only?
3. Who is not supplying your goods through E-Commerce marketplace?
4. Who is dealing with exempted supplies of goods under GST?
5. Who is not the Casual taxable person?
6. Who is not a Non-Resident taxable person?
7. Who is not dealing with tobacco, pan masala, and ice cream?
8. All Services provider expect restaurant related services.

Following are some condition which has to fulfil availing composition scheme under GST

All the above requirements are conditions but some more as following: –

• All business registered with the same PAN are treated as composition supply and total aggregate turnover will be fall within the threshold limit.
• The taxpayer has to mention “Composite taxable person” on their every bill of supply, notice and signboard place at their business premises.

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In this topic, we will get to know that persons or businesses which have Exemption from GST Registration or which type of businesses are not needed to get registered under GST. In GST registration is based on what is the nature of their supply of goods and services.

The taxpayers who are exempted from GST Registration are:

1. Agriculturists
2. Persons falling into Exemption Limit
3. Persons making supplies of goods and services which are Nil-Rated/ Exempt under the GST Act.
4. Persons making supplies of goods and services which are not covered under the GST Act.
5. That Supply of Goods or Services which are not covered by GST
6. Supplies covered under reverse charge

Now we will explain these in the term with diagrams as follows: –

1. Agriculturists: –

A person who cultivate their land to make supplies of products/goods. Under GST these types of persons have Exemption from GST Registration.

2. Persons falling into Exemption Limit: –

GST has some limit of Exemption from GST Registration for very small businesses like the local General store in a village and etc. Under GST expect some special states Govt. set a limit of aggregate turnover up to 20 Lacs and for special states limit reduced to 10 Lacs as shown under: –

3. Persons making supplies of goods and services which are Nil-Rated/ Exempt under GST Act: –

Under GST some Goods/Services of daily needs have Exemption from GST Registration. The some of these areas following

1. Health Care
2. Education
3. Services by a veterinary clinic in relation to health care of animals or birds
4. The live animal such as Mammals, Birds, Insects
5. The meat of bovine animals, fresh and chilled
6. Onions, shallots, garlic, leeks and other alliaceous vegetables, fresh or chilled.
7. Unprocessed foods:- Milk, Egg etc.
   

   

So, if you are dealing with this type of goods than you do not need to register under GST.

• List of Exempted Goods under GST- Click to download
• List of Exempted Services under GST- Click to download

4. Persons making supplies of goods and services which are not covered under the GST Act: 

Under GST some Goods/Services are not covered. It means on these types of goods still old indirect structure is implemented and these type of businesses have Exemption from GST Registration. Some of these areas following

1. Petroleum Products
2. Electricity
3. Alcohol for human consumption
4. Tabasco etc.

So, if you are dealing with this type of goods than you do not need to register under GST.

5.That Supply of Goods or Services which are not covered under GST: –

There are some of the services that are not covered under the GST because these are cover under some other law or exempted. Some of these areas following

1. Services by an employee.
2. Duties of Public elected persons -PM, CM, MP or MLA.
3. A person who is a member or director of a body.
4. Services provided at the funeral.
5. Services Provide by any Court.
6. Sale of land and building.
7. Actionable claims.

6.Supplies covered under reverse charge: –

There is provision under the act that if any person supplies taxable goods/services on which tax will be paid by the recipient then he does not need to get registered himself under GST.

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Now you have to learn Whom to Register under GST(Goods and Services Tax) Act or when your Business need to have registered under GST(Goods and Services Tax) Act: –

if following any condition applicable to your business than you have to register under the GST Act.

1. If your aggregate turnover in a financial year exceeds Rs 20 Lacs [Rs. 10 Lacs in case of special category States except J & K] ^{show listas under}
2. If your turnover does not include the supply of only those goods/services which are exempt under the GST Act.
3. If you want to supply your goods through E-Commerce (like Amazon, Flipkart, Snapdeal etc.)
4. If your business was registered under the Pre-GST law (i.e., Excise, VAT, Service Tax etc.) need to register under GST.
5. If you drive the inter-state supply of goods.
6. If you are a Non-Resident taxable person.
7. If you are a Casual Taxable Person.
8. If you are Agents of a supplier.
9. If you are Taxpayers paying tax under reverse charge mechanism.

Note: -Latest Update:

As per 23rd GST Council Meet on 10th November 2017

E-commerce sellers/aggregators need not register if total sales are less than Rs. 20 lakhs. Notification No. 65/2017 – Central Tax dated 15.11.2017

As per 22nd GST Council meeting of 6th October 2017

Service providers providing inter-state services are exempted from registration if their annual turnover is below 20lakhs (10 lakhs for Special states. 20 lakhs for J&K)

Notification No. 7/2017 – Integrated Tax dated 14th September 2017

Job workers making inter-state supply of services to a registered person are exempted from registration if their turnover is below 20lakhs (10 lakhs for Special states)

 What is Aggregate Turnover?

The term ‘aggregate turnover’ has been defined in GST law as under:

“Aggregate turnover” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on a reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess.

Special Category States Under GST

Following states are assigned special status under Goods and Services Tax Law:

1. 1. Arunachal Pradesh
   2. Assam
   3. Jammu & Kashmir
   4. Manipur
   5. Meghalaya
   6. Mizoram
   7. Nagaland
   8. Sikkim
   9. Tripura
   10. Himachal Pradesh
   11. Uttarakhand

What are Exempted Goods and Services?

Article Compiles a list of 149 Type of Goods which are exempt from Tax under GST with respective HSN Code and Description of Goods as per Notification No. 2/2017-Central Tax (Rate) New Delhi, the 28th June 2017

List of Exempted Services under GST- Click to Download

What is E-Commerce?

            E-commerce is buying and selling goods and services over the Internet. E-business is a structure that includes not only those transactions that centre on buying and selling goods and services to generate revenue, but also those transactions that support revenue generation. These activities include generating demand for goods and services, offering sales support and customer service, or facilitating communications between business partners.

What is Pre-GST Law?

Before GST in India here was the number of tax law which are now subsumed into GST. So, if your business is already registered under any old indirect Taxation Like Excise, VAT, Services Tax and etc. before 01/07/201

What is an inter-state supply of goods?

When on business sold their goods to another state this is called the inter-state supply of goods.

Who is a Non-Resident taxable person?

The person who makes the supply of goods or services as a principal, agent and any other capacity in a taxable state or union territory, where GST applies but he doesn’t have a fixed place of business in India or residence in India. As per GST, you will be treated as a Non-Resident taxable person. 

Who is Casual Taxable Person?

The person who makes the supply of goods or services on an occasional basis as a principal, agent and any other capacity in a taxable state or union territory, where GST applies but he doesn’t have a fixed place of Business. As per GST, will be treated as a casual taxable person.

Important Points: –

• This type of registration valid only for 90 days
• Expiry of the first 90 days it can be extended to 90 days again.
• In this type of registration, the taxpayer has to deposit Tax liability in advance and it will be used as ITC
• if extension made than addition tax liability must be deposited as required in advance again.

 Who is the Agent of a supplier?

The GST Act defines an Agent as a person including a factor, broker, commission agent, del-credere agent, an auctioneer or any other mercantile agent, by whatever name called, who carries on the business of supply or receipt of goods or services or both on behalf of another

If you are Taxpayers paying tax under reverse charge mechanism.

             Reverse Charge means the liability to pay the tax by the person receiving goods and/or services instead of the person supplying the goods and/or services in respect of specified categories of supplies.

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