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.
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: –
If the supply of services made to the un-registered person, then the Place of supply is the address of recipient which was recorded in the record of the supplier of services. In all other the cases, It will be the Place of the supplier of services.
Place of Supply of Services
|All services which are not covered in Subsection 3 to 12||As explained above in two points|
|12 (3)||Directly in relation to immovable properly 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 cultural, artistic event, amusement park etc.||Place where such 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 hand 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 the separate journey.
|12 (10)||Services on board 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 on board the place of supply shall be Delhi
|12 (11)||Telecommunication Services
· Fixed telecommunication lines
· Mobile connection for telecommunication
· Mobile connection for telecommunication, internet, DTH T.V. on the prepayment basis
· Other Cases
|·Location of telecommunication line
·Location of billing address of the recipient
·Address of the selling agent or where pre-Payment is received
·Address of the recipient as per records
|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|
B2B – Business to Business
B2C – Business to Customer
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.
As per Section 2(17) of the IGST ACT,”Online information and database access or retrieval services means 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 “.