Place of Supply under the Model GST Law

Posted Date : 08-Sep-2016 , 04:44:59 pm | Posted By CASANSAAR print

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Place of Supply under the Model GST Law
By CMA Vineet Chopra, FCS, ACMA, LLM, PGGDBA-Finance.
Mb: 08720-021-021, email: vineet.chopra01@gmail.com

Place of Supply (POS)
Determination of POS is an important aspect of GST dkeeping in view its relevance on Input Tax Credit, compliances for multiple states, therefore, its impact needs to be examined by the industry before the GST is made effective. POS is important to determine:

Whether a particular supply is inter-state or intra-state for paying tax either IGST or CGST/SGST.
The State in which various compliances to be done like registration, returns, etc.
The State to which benefit of taxes accrue and the place where taxes will be paid?
Whether a particular supply is export or import?
To maintain smooth flow of credit

General Rule for determining POS
As a general rule, the place of supply will be the destination or the place where goods or services are actually consumed. The model GST law provides for POS under Chapter IV, section 5 & 6 of IGST Act, 2016.

POS of Goods

Sr.	Type of Supply in respect of Goods	Place of supply
1	Supply with movement of goods	Location where goods are delivered to recipient
2	No movement of goods	Location of goods at time of delivery to recipient
3	Goods installed or assembled	Place of installation or assembly
4	Supply of goods on direction of third person or agent before or during movement of goods	Principal place of business of third person
5	Goods supplied on board a conveyance such as vessel, aircraft, train or motor vehicle	Location at which the goods are taken on board
6	Any other case	As may be prescribed

POS of Services
General Rule
Supply made to a registered person                        -              Location of such person
Supply made to other than a registered person                 -              Location of recipient if address on record exists;
                                                                                                                In other cases Location of supplier
Specific Rule

Sr.	Type of Service	Place of Supply
1	Services with respect to an immovable property like -	Location where immovable property, boat, vessel is located. Where immovable property or boat or vessel is located in more than one state, the supply shall be treated to be made in each state in proportion to value for services collected as per the contract or in absence of contract on a prescribed basis.
a	Services by Architects, interior decorators, engineers, estate agents, services of right to use or carrying out construction works
b	Services by way of lodging accommodation, hotel, club , etc
c	Services for providing accommodation in any immovable property for social, official, religious function, marriage events at such property
d	Any ancillary services to above
2	Restaurant, catering, fitness, beauty treatment, health services including cosmetic and plastic surgery	Location where services are actually performed.
3	Training & performance appraisal	Location of registered person or In case of other than registered person – location where services actually performed.
4	Services of admission to a cultural, artistic, sporting, educational or entertainment event or amusement park or services ancilliary thereto	Location where the event actually held or Location of Park or such other place
5	Services of organizing cultural, artistic, sport, scientific, educational or entertainment event or in relation to conference, fair, exhibition or ancillary services, assigning sponsorship, etc.	Location of registered person or In case of other than registered person – location of event. Where event held in more than one state, the supply shall be taken as made in each state proportionate to value of services provided in each State as per the contract or in absence of contract, on a prescribed basis.
6	Services by way of transportation of goods including by mail or courier	Location of registered person or In case of other than registered person – location where goods are handed over.
7	Passenger transportation	Location of registered person or In case of other than registered person – location where journey started. In case of place of start of journey is not known – Location of registered person or In case of other than registered person – Location of recipient if address on record exists; In any other case location of supplier of service Return journey shall be treated as a separate journey
8	Supply of services on board a conveyance such as vessel, aircraft, train or motor vehicle	Location of first scheduled point of departure
9	Telecommunication, broadcasting, data transfer, D to H TV services
a	Fixed telecommunication line, internet, cable or dish antenna	Place where line, leased circuit, cable connection, or dish antenna installed for receipt of services
b	Mobile telecommunication, internet on post paid basis	Location of billing address of recipient on record of supplier
c	Prepaid basis	Location where pre-payment is received Where prepayment received through electronic mode – location of recipient on records of supplier
10	Banking, financial service, stock broking,	Location of recipient on records of supplier In case where service is not linked to account of recipient – Location of supplier
11	Insurance	Location of registered person or In case of other than registered person – Location of recipient on record of supplier
12	Advertisement services to the Central Government, State Government, statutory body, local authority	Location of each such States The value of such supplies specific to each State shall be proportionate to amount attributable to service provided to respective State as per the contract and in absence of the contract on a prescribed basis