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As to continuity of Place of supply of Goods now we will discuss Place of Supply of Services under GST because GST is destination-based Tax system it means GST is to be collected by the state where actual services are consumed.
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2. Place of Supply of Services
The place of supply of services is determined on the basis of the geographical location. it means it can be further divided into the following two categories, which are explained as under: –
1. Supply within India: –
If goods are supplied within India then it can be divided further into the following subcategories shown as under: –
A) Supply to Registered Person: –
IGST Act provides the provision under section 12(2)(a) that the place of supply of services made to the registered person than of the place of supply of services shall be the place of such person. But the place of supply for some services is determined by IGST Law which is mention in section 12(3) to 12(14) of IGST Act. Details of these subsections are in Table below: –
B) Supply to unregistered Person: –
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If the supply of services made to the unregistered person, then the Place of supply is the address of the recipient which was recorded in the record of the supplier of services. In all other cases, It will be the Place of the supplier of services.
| Section/ Sub Section | Services | Place of Supply of Services |
| 12(1) & 12 (2) | All services which are not covered in Subsection 3 to 12 | As explained above in two points |
| 12 (3) | Directly in relation to immovable property like architecture, construction, accommodation, event etc. | The location of such immovable property |
| 12 (4) | Restaurants, catering, grooming health services including cosmetic and plastic surgery | Place where such services are actually performed |
| 12 (5) | Training and performance appraisals | Registered recipient – Place of the recipient. Unregistered Recipient – where the Services are actually performed |
| 12 (6) | Admission to the cultural, artistic event, amusement park etc. | Place where such an event is held or where such park is located |
| 12 (7) | Organizing of cultural, entertainment, conferences, Trade fairs etc. | B2B – Place of Recipient B2C – where the event actually held |
| 12 (8) | Transportation of Goods including mail or courier | B2B – Place of Recipient B2C – where goods are handed over to Transporter |
| 12 (9) | Transportation of Passengers | B2B – Place of Recipient B2C – Place where Passenger embarks on the conveyance of the continuous journey. But Return journey shall be treated as a separate journey. |
| 12 (10) | Services onboard a conveyance | Frist Scheduled point of departure of that conveyance For Example – M/s Kingfisher airline hires a doctor for the passengers travelling from Delhi to Mumbai. In such a case although the services by a doctor have been provided onboard the place of supply shall be Delhi |
| 12 (11) | Telecommunication Services
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| 12 (12) | Banking and Financial Services (Including stock Broking) | Location of the recipient of the services else location of the supplier. |
| 12 (13) | Insurance Services | B2B – Place of Recipient B2C – Location of the recipient of records of the supplier |
| 12 (14) | Advertisement services to Government | Location of the state of advertisement |
Note: –
- B2B – Business to Business
- B2C – Business to Customer
2. Place of Supply of Services Outside India:
Place of supply of services is the location of the recipient of the services if the place of the recipient is not available than the place of the supplier will be the place of the Supply of Services.
3. Special Provision for the supply of online information or database.
As per Section 2(17) of the IGST ACT, “Online information and database access or retrieval services mean 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 “.