Place of Supply (POS)

Place of Supply
Place of supply (POS) is a very important topic in the GST law to determine whether
a supply is inter-state supply or intra-state supply.
Location of supplier and Place of supply
Location of supplier of goods or services or both and the place of supply both
determine whether the supply is taken as inter-state supply or intra state supply. If
the location of supplier and the place of supply both fall in the same state or union
territory, then CGST and SGST/UTGST are charged. In other case, IGST is charged.
Sections 2(15), 10, 11, 12, 13 and 14 of the IGST Act are the relevant sections.
Section 2(15) – Location of supplier of goods and location of supplier of service
Location of supplier of goods
Section 2(15) has defined the term “location of supplier of service” but not the term
“location of supplier of goods.” However, with the regard to the location of supplier
of goods we have the meaning of the word location. Location means the geographical
point where the supplier is situated with the goods in his control and ready to supply.
Location of supplier of service
As per section 2(15), the location of supplier of service shall be determined as follows:
Case 1: Where the supply is made from the place of business for which
registration has been obtained
In such case, then location of supplier of service is the place of business.
Case 2: Where the supply is made from a place other than the place of business
for which registration has been obtained. Such other place is known as fixed
establishment.
In such case, location of supplier of service is the place of fixed establishment.
Case 3: Where the supply is made from more than one establishment (place of
business or fixed establishment)
In such case, location of supplier of service is the establishment most directly
concerned or related with the supply.
Note: As per section 2(50) of the CGST Act, 2017, fixed establishment is a place
which is characterised by a sufficient degree of permanence and suitable structure
in terms in human and technical resources to supply services, or to receive and use
services for its own needs.
Case 4: Other cases
In such case, location of supplier of service is the residential address of the supplier.
Section 10: Place of supply of goods excluding the cases of import and export
of goods

Section Different situations Place of supply

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 10(1)(a) Where there is movement of goods whether by The destination of the
the supplier or recipient or another person goods i.e., where the
movement of the
goods terminates.
10(1)(b) Where before or during movement of the goods, Principal Place of
a supplier receives a direction from a third business of the third
person (who is acting as an agent or otherwise) person.
to deliver goods to a recipient or any other
person either by way of transfer of documents to
title or otherwise
10(1)(c) Where there is no movement of goods whether by Place of delivery to
the supplier or recipient the recipient
10(1)(d) Where goods are assembled or installed at site Place of such
installation or
assembly
10(1)(e) Where the goods are supplied on board a Place at which such
conveyance like vessel, an aircraft, a train or a goods are taken on
motor vehicle board

Section 11: Place of supply of goods in case of import and export of goods

Section Different situations Place of supply

11(a) Import to India Location of importer
11(b) Export of goods from India Location outside India

Section 12: Place of supply of services where location of supplier and recipient
is in India
Section 12(1)
As per this section, the place of supply of services shall be determined as per the
provisions of section 12 given location of supplier and recipient is in India.
Section 12(2)
This section lays down the general provision and is applicable when the sections
mentioned below are applicable. As per this section, we have to check whether the
given case is a B2B supply or B2C supply.
B2B supply i.e., Business to Business supply
If supply is made to a registered person, then the location of such registered person is
place of supply.
B2C supply i.e., Business to consumer supply
If supply is made to a consumer or non-registered person, then there are two sub-
cases as follows:
i. Where the location of recipient is available, then the location of the recipient
is place of supply.
ii. Where the location of recipient is not available, then the location of the
supplier is place of supply.

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Section 12(3): Service in relation to immovable property or by way of
accommodation in such property
a. Services directly in relation to an immovable property including services
provided by architects, interior decorates, surveyors, engineers and other
related experts or estate agents, any service by way of grant of rights to use
immovable property or for carrying out or coordination of construction work
or
b. Services by way of lodging accommodation by a hotel, inn, guest house,
home stay, club or campsite, by whatever name called, and including a
house boat or any other vessel or
c. Services by way of accommodation in any immovable property for
organising any marriage or reception or matters related thereto, official,
social, cultural, religious or business function including services provided
in relation to such function at such property or
d. any service ancillary to the service referred to in a, b and c.
In all the above clauses from a to d, place of supply is the place where such immovable
property or boat or vessel is located or intended to be located. However, if the location
of the immovable property or boat or vessel is located outside India, place of supply
is the location of the recipient.
Section 12(4)
In case of restaurant and catering services, personal grooming, fitness, beauty
treatment, health service including cosmetic and plastic surgery, the location where
the service is actually performed is place of supply.
Example: Classy Saloon (registered in GST in Delhi) gives a haircut and facial service
to Sailesh of Delhi. Since the service is performed in Delhi, therefore the place of
supply is Delhi and the location of supplier is also Delhi, hence CGST and SGST
should be charged in the invoice.
Section 12(5)
a. In case of services in relation to training and performance appraisal to a
registered person, the location of such registered person is place of supply.
b. In case of services in relation to training and performance appraisal to a
person other than registered person, the location of performance of the service
is place of supply.
Section 12(6)
In case of services provided by way of admission to a cultural, artistic, sporting,
scientific, educational, entertainment event or amusement park or any other place
and service ancillary thereto, the place where the event is actually held or where the
amusement park or such other place is located is place of supply.
Section 12(7)
In case of services provided by way of –
a. Organisation of a cultural, artistic, sporting, scientific, educational or
entertainment event including supply of services in relation to a conference,
fair, exhibition, celebration or similar events or

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 b. Services ancillary to organisation of any of the events or services referred to in
clause a or assigning of sponsorship to such events to -
i. a registered person, then the location of such registered person is place
of supply.
ii. a person other than a registered person, then the place where the event
is actually held and if the event is held outside India, the place of supply
shall be the location of the recipient.
Explanation – where the event is held in more than one state or UT and a
consolidated amount is charged for supply of services relating to such event, the
place of supply of such services shall be taken as being in each of the respective
states or UT in proportion to the value for services separately collected or determined
in terms of the contract or agreement entered into in this regard or in the absence of
such contract or agreement, on such other basis as may be prescribed.
Section 12(8)
In case of services by way of transportation of goods, including by mail or courier to
–
a. a registered person, the location of such registered person is place of supply;
b. a person other than registered person, then the location at which such goods
are handed over for their transportation is place of supply.
Note: where supply of service of transportation of goods terminates outside India,
then place of supply will be out of India, irrespective of supplier and recipient of
service.
Section 12(9)
In case of passenger transportation services to –
a. a registered person, the location of such registered person is place of supply;
b. a person other than registered person, then place where the passenger
embarks on the conveyance for a continuous journey is place of supply.
Section 12(10)
In case of services on board a conveyance, including a vessel, an aircraft, a train or
a motor vehicle, then location of the first scheduled point of departure of that
conveyance for the journey is place of supply.
Section 12(11)
In case of telecommunication services including data transfer, broadcasting, cable
and direct to home television services to any person –
a. in case of services by way of fixed telecommunication line, leased circuits,
internet leased circuit, cable or dish antenna, then location where the
telecommunication line, leased circuit or cable connection or dish antenna is
installed for receipt of services is place of supply.
b. in case of mobile connection for telecommunication and internet services
provided on post-paid basis, location of billing address of the recipient of
services on the record of the supplier is place of supply.

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 c. in cases where mobile connection for telecommunication, internet service and
direct to home television services are provided on pre-payment basis through
a voucher or any other means –
i. through a selling agent or a re-seller or a distributor of subscriber
identity module card or re-charge voucher, the address of the selling
agent or re-seller or distributor as per the record of the supplier at the
time of supply is place of supply.
ii. by any person to the final subscriber, the location where such pre-
payment is received or such vouchers are sold is the place of supply.
iii. in other cases, the address of the recipient as per the records of the
supplier of services and where such address is not available, the place
of supply shall be location of the supplier of services.
Section 12(12)
In case of banking and other financial services, including stock broking services to
any person, the location of the recipient of services on the records of the supplier of
services is the place of supply. If the location of the recipient of services is not known,
then the location of supplier is the place of supply.
Section 12(13)
In case of insurance services –
a. to a registered person, the location of such person is the place of supply ;
b. to a person other than registered person, then the location of the recipient of
services on the records of the supplier is the place of supply.
Section 12(14)
In case of advertising services to the central government, a state government, a
statutory body, or a local authority meant for the states or UTs identified in the
contract or agreement, then place of supply shall be taken as being in each of such
states or UTs and the value of such supplies specific to each state or UT shall be in
proportion to the amount attributable to services provided by way of dissemination in
the respective states or UTs s may be determined in terms of the contract or agreement
entered into in this regard or, in the absence of such contract or agreement, on such
other basis as may be prescribed.
Section 13: Place of supply of services where location of supplier or location of
recipient is outside India

Section Services Place of supply

13(2) All services except the services The location of the recipient of
specified below: services. If the location of the
recipient is not available in the
ordinary course of business, the
place of supply shall be the location
of the supplier.
13(3) a. services provided in respect The location where the services are
to goods which are required actually performed. However, when
to be made physically such services are provided from a
available by the recipient of remote location by way of e-means,

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 services to the supplier of the place of supply shall be the
services, or to a person location where goods are situated
acting on behalf of the at the time of supply of services.
supplier Further, this clause is not
applicable in the case of services
supplied in respect of goods which
are temporarily imported into India
for repairs or for any other
treatment or process and are
exported after repairs, or treatment
or process without being put to any
other use in India other than which
is required for such repairs or
treatment or process.
b. services supplied to an
individual represented The location where the services are
either as the recipient of actually performed.
services or a person acting
on behalf of the recipient,
which require the physical
presence of the recipient or
the person acting on behalf,
with the supplier for the
supply of services.
13(4) Services supplied directly in The place where the immovable
relation to an immovable property property is located or intended to
including services supplied in this be located.
regard by experts and estate
agents, supply of accommodation
by a hotel, inn, guest house, club
or campsite, by whatever name
called, grant of rights to use
immovable property, services for
carrying out or coordination of
construction work, including that
of architects or interior decorates,
13(5) Services supplied by way of The place where the event is
admission to, or organisation of a actually held.
cultural, artistic, sporting,
scientific, educational or
entertainment event, or a
celebration, conference fair,
exhibition or similar services
ancillary to such admission or
organisation,
13(6) Where any services referred to The location in the taxable
sections 13(3) to 13(5) is supplied territory.
at more than one location,
including a location in the taxable
territory,
13(7) Where any services referred to The place of supply shall be taken
sections 13(3) to 13(5) is supplied as being in each of the respective
at more than one state or UT states of UTs.

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13(8) a. services supplied by a The location of the supplier.
banking company, financial
institution or a NBFC to
account holders or
b. intermediary services or
c. services consisting of hiring
of means of transport,
including yachts but
excluding aircrafts and
vessels up to a period of 1
month,
13(9) Services of transportation of goods The place of destination of such
other than by way of mail or goods.
courier
13(10) Services in respect of passenger The place where the passenger
transportation services, embarks on the conveyance for a
continuous journey.
13(11) Services provided on board a The first scheduled point of
conveyance during the course of a departure of that conveyance for
passenger transport operation the journey.
including services intended to be
wholly or substantially consumed
while on board,
13(12) Online information and database The location of the recipient of
access or retrieval services, services.
13(13) To avoid double taxation or no-taxation of the supply of a service, or for
the uniform application of rules, the government shall have the power to
notify any description of services or circumstances in which the place of
supply shall be the place of effective use and enjoyment of a service.