Place of Supply in case of Goods and in case of Services (both General and Specific Services)

The Determination of the “Place of Supply” under the Goods and Services Tax (GST) regime in India is crucial for identifying whether a transaction is intrastate or interstate. This distinction is essential for the correct levy of Integrated GST (IGST) for interstate transactions and Central GST (CGST) plus State GST (SGST) for intrastate transactions. The rules for determining the place of supply vary between goods and services, with further distinctions for specific categories of services.

Place of Supply for Goods

1. General Rule:

The place of supply of goods is where the goods are delivered. For goods supplied during a movement (e.g., through courier or by mail), it is the location of the goods at the time the movement terminates for delivery to the recipient.

2. Supply of Goods – Without Movement:

If the supply does not involve movement, the place of supply is the location of goods at the time of delivery to the recipient.

3. Installation/Assembly at Site:

For goods installed or assembled at a site, the place of supply is where the installation or assembly takes place.

4. Goods Supplied on Board a Conveyance:

Such as aircraft, vessel, train, or motor vehicle, the place of supply is the location at which the goods are taken on board.

Place of Supply for Services (General Rule)

The place of supply for services is determined based on whether the recipient is registered. If the recipient is registered, the place of supply is the location of such recipient. If not registered, it is the location of the recipient as per the records of the supplier.

Specific Services

1. Immovable Property Related Services:

Includes hotel accommodation, event management, and architecture services. The place of supply is the location of the immovable property.

2. Event-Based Services:

For admission to an event or an amusement park, the place of supply is the location where the event is held or the park is located.

3. Transportation of Goods Services:

The place of supply is the location of the recipient if registered; otherwise, it is the place where the goods are handed over for transportation.

4. Passenger Transportation Services:

The place of supply is where the passenger embarks on the conveyance for a continuous journey.

5. Services Provided on Board a Conveyance:

Such as those provided during a journey in an aircraft, vessel, train, or motor vehicle, the place of supply is the first scheduled point of departure of that conveyance for the journey.

6. Telecommunication Services:

For mobile connection and services provided through DTH, internet, etc., the place of supply is the location of the billing address of the recipient.

7. Banking and Financial Services:

The place of supply is the location of the recipient as per the records of the service provider. If the location is not available, the supplier’s location is considered.

8. Online Information and Database Access or Retrieval Services (OIDAR):

For services provided to an unregistered recipient, the place of supply is the location of the recipient. Various proxies are used to determine the recipient’s location, including the billing address, IP address, bank details, etc.