GST Place of Supply

CA R. Murali Krishnan
M/s Krishna Moorthy & Co., Kollam
Intrastate or Interstate
 The next most important aspect which needs to be discussed is the Place
of Supply
 The determination of the type of tax to be levied is based on Place of
Supply
 For this we need to understand
 what is Intrastate Supply –ie within the state - CGST & SGST applies
 What is Interstate Supply-ie outside the state- IGST applies
DETERMINATION OF CHARGE

Location Place of
of Supplier Supply

Karnataka

Charge
of Tax
Intra State

CGST SGST
DETERMINATION OF CHARGE

Location Place
of Supplier of Supply

Charge of Tamil Nadu

Karnataka
Tax

Inter State

IGST
Place of Supply- Introduction

 The rules of Place of Supply are different for Goods and different for
services

 For both Goods & Services, there are general provisions based on which the
place of supply is to be determined.

 Apart from the above, there are special provisions for both depending on
the different scenarios which are like an exception to the general Rule
Question Time
 Q 1. Which of the following is an inter-State supply?
 (a) Supplier of goods located in Delhi and place of supply of goods SEZ located
in Delhi
 (b) Supplier of goods located in Delhi and place of supply of goods in Jaipur
 (c) Supplier of goods located in Delhi and place of supply of goods SEZ located
in Chandigarh
 (d) All the above

 Ans. (d) all the above

Question Time
 Q 2. Which of the following is an intrastate supply?

 (a) Supplier of goods located in Delhi and place of supply of goods SEZ located
in Delhi
 (b) Supplier of goods located in Delhi and place of supply of goods in Jaipur
 (c) Supplier of goods located in Delhi and place of supply of goods in Delhi
 (d) All the above

 Ans. (c) Supplier of goods located in Delhi and place of supply of goods in
Delhi
Question Time
 Q 3. Which of the following transaction is inter-state supply of goods involving
movement of goods?
 (a) Location of supplier is in Bangalore and location of recipient is in Mumbai
 (b) Location of supplier is in Bangalore and place of supply is Mumbai
 (c) Location of supplier and place of supply is Bangalore
 (d) None of the above

 Ans. (b) Location of supplier is in Bangalore and place of supply is Mumbai

Question Time
 Q 4. Supply of goods in the course of import of territory of India is

 (a) Intrastate supply

 (b) Inter-State supply
 (c) Export
 (d) Inter-state trade or commerce

 Ans. (d) inter-State trade or commerce

Place of Supply-Introduction
 Place of Supply of Goods – General Rule has two situations
 A- With Movement of Goods
 B- Without Movement of Goods
 Apart from the above, place of supply of goods has the certain special
exceptions
Place of Supply With Movement of Goods
Place of Supply With Movement of Goods
 Example 1
 George Electronics in Mumbai, Maharashtra, supplies 10 computers to
Aravind Electronics in Pune, Maharashtra.
 Here,
Location of the supplier: Mumbai in Maharashtra
 Place of supply: The place of business of Aravind Electronics is in Pune,
Maharashtra and the movement of the computers terminates here for
delivery.
 Hence, the place of supply is Pune in Maharashtra.
Place of Supply With Movement of Goods

This is an intrastate supply. The taxes applicable are CGST and SGST.
Place of Supply With Movement of Goods
 Example 2
 George Electronics in Mumbai, Maharashtra supplies 20 computers to
Manoj Electronics in Ahmedabad, Gujarat.

 Location of supplier: Mumbai in Maharashtra

 Place of supply: Ahmedabad in Gujarat

Place of Supply With Movement of Goods

This is an inter state supply. The tax applicable on this supply is IGST.
Place of Supply With Movement of Goods
 Let us understand the concept of termination of movement of
goods when the place of supply is different from the location of the
recipient
 Example 1
 George Electronics in Mumbai, Maharashtra, receives an order for 50
computers from Computer World in Goa.
 Computer World also informed George Electronics that they will take
delivery of the computers ex-factory, at the premises of George
Electronics.
Place of Supply With Movement of Goods
 Let us determine the charge of tax here.
 Location of supplier: Mumbai in Maharashtra
 Place of Supply: The place of business of the recipient, Computer
World, is in Goa.
 It must be noted however, that Computer World has agreed to take
delivery of the computers ex-factory of the supplier, George
Electronics.
 This implies that the termination of the movement of the computers
to Computer World takes place ex-factory of George Electronics,
 i.e., in Mumbai. Hence, the place of supply is Mumbai in Maharashtra.
Place of Supply With Movement of Goods

This is an intra-state supply and the taxes applicable are CGST and SGST.
Question Time
 Q 1. Which of the following supply involving movement of goods is an intra-
State supply?
 (a) Location of supplier in Kerala and place of supply in Tamil Nadu
 (b) Location of supplier in Karnataka and place of supply in Karnataka
 (c) Location of supplier in Kerala and place of supply on Andhra Pradesh
 (d) None of the above

 Ans. (b) Location of supplier in Karnataka and place of supply in Karnataka.

Place of Supply without movement of goods
Place of Supply without movement of goods
 2. When supply does not involve movement of goods, the location of the goods
at the time of delivery to the recipient is the place of supply.
 For example: Rex Cars, whose registered place of business is Chennai, Tamil
Nadu, opens a showroom in Mysore, Karnataka. They purchase a pre-installed
generator at the premises from Rohan Generators in Mysore, Karnataka.
 Location of supplier: Mysore, Karnataka
 Place of supply: The supply of the generator does not require its movement.
Hence, the place of supply is Mysore, Karnataka.
 This is an intrastate supply, and the taxes applicable are CGST and SGST.
Place of Supply without movement of goods
Place of Supply –Assembly or Installation at site
 3. When the goods are assembled or installed at site, the place of assembly
or installation is the place of supply
 For example: Rex Cars, whose registered place of business is Chennai,
Tamil Nadu, opens a new branch in Hyderabad, Telangana. It purchases a
lift, to be installed at the branch, from Ron Lifts, whose registered place of
business is also Chennai, Tamil Nadu.
 Location of supplier: Chennai, Tamil Nadu
 Place of supply: The lift is assembled and installed at the premises of Rex
Cars in Hyderabad, Telangana.
 Hence, place of supply is Hyderabad, Telangana.
 This is an interstate supply, and the tax applicable is IGST.
Place of Supply without movement of goods
Question Time
 Q 2. Place of supply in case of installation of elevator is

 (a) Where the movement of elevator commences from the supplier’s place
 (b) Where the delivery of elevator is taken
 (c) Where the installation of elevator is made
 (d) Where address of the recipient is mentioned in the invoice

 Ans. (c) Where the installation of elevator is made.

Place of Supply – On Board a conveyance
 4. When the goods are supplied on board a conveyance, the location at
which the goods are taken on board is the place of supply
 For example: A person purchases a power bank from the in-flight shopping
catalogue on board a flight travelling from Kolkata to Hyderabad.
 The airlines has a registered place of business in Kolkata and the power
bank is taken on board the flight in Kolkata.
 Location of supplier: Kolkata, West Bengal
 Place of supply: Kolkata, West Bengal
 This is an intrastate supply, and the taxes applicable are CGST and SGST.
Place of Supply – On Board a conveyance
Question Time
 Q 3. Place of supply of food taken onboard at Delhi for an aircraft departing
from Delhi to Bangalore via Hyderabad is
 (a) Address of the aircraft carrier mentioned on the invoice of the supplier
 (b) Delhi
 (c) Jaipur
 (d) Hyderabad

 Ans. (b) Delhi

Place of Supply- Bill to Ship To Scenarios
 In the Bill to – Ship to model, the billing and shipping of goods are done
to two states and entities. Let us understand ‘Bill to – Ship to’
transactions with an example.
 Ganesh Traders, a dealer in hardware goods, located in Maharashtra
receives an order from Maruthi Traders, located in Karnataka.
 The order is for the supply of 100 aluminium ladders, with an instruction
to ship the ladders to Prime Hardwares, located in Tamil Nadu.
 Prime Hardwares is a customer of Maruthi Traders.
Place of Supply- Bill to Ship To Scenarios
 Treatment of Bill to – Ship to transactions under GST
 In GST, if the goods are supplied by the supplier to the recipient on the
direction of a third person, it will be deemed that the third person has
received the goods, and
 the place of supply will be the principal place of business of such third
person.
 Let us understand this with an example.
Place of Supply- Bill to Ship To Scenarios
 There are two parts to this transaction:
 First part of the transaction – between Ganesh Traders and Maruthi
Traders:
 Ganesh Traders is the supplier of ladders and Maruthi Traders is the buyer.
 Accordingly, Ganesh Traders bills the transaction to Maruthi Traders, and as
per the instruction, ships the goods to Prime Hardwares in Tamil Nadu.
 Second part of the transaction – between Maruthi Traders and Prime
Hardwares:
 Maruthi Traders is the supplier and Prime Hardwares is the buyer.
 Maruthi Traders bills the transaction to Prime Hardwares, and endorses the
lorry receipt (goods shipped in a lorry by Ganesh Traders) in favour of Prime
Hardwares.
 This lorry receipt (LR) will enable Prime Hardwares to take the delivery of
the goods.
Place of Supply- Bill to Ship To Scenarios
 Ganesh Traders is a dealer in hardware goods, located in Maharashtra.
 They receive an order from Maruthi Traders, located in Karnataka,
 to supply 100 aluminium ladders, with an instruction
 to ship the ladders to Prime Hardwares, located in Tamil Nadu.
Place of Supply- Bill to Ship To Scenarios
Place of Supply- Bill to Ship To Scenarios
 In the example, on the instruction from Maruthi Traders,
 Ganesh Traders ships the aluminium ladders to Prime Hardwares located
in Tamil Nadu.
 Here, Maruthi Traders is deemed as the third person.
 Therefore, the place of supply will be the principal place of business of
the third person i.e., Karnataka.
 Accordingly, Ganesh Traders charges IGST on billing to Maruthi Traders.
 The second part of transaction between Maruthi Traders and Prime
Hardwares will also be interstate, and
 IGST will be charged.
Place of Supply- Bill to Ship - Scenarios
Let us discuss further with various scenarios.
Scenario 1
Place of Supply- Bill to Ship To Scenarios
 In the example, on the instruction from Maruthi Traders,
 Ganesh Traders ships the aluminium ladders to Prime Hardwares located
in Karnataka.
 Here, Maruthi Traders is deemed as the third person.
 Therefore, the place of supply will be the principal place of business of
the third person i.e., Maharashtra.
 Accordingly, Ganesh Traders charges CGST+ SGST on billing to Maruthi
Traders.
 The second part of transaction between Maruthi Traders and Prime
Hardwares will be interstate, and
 IGST will be charged.
Place of Supply- Bill to Ship To Scenarios
Let us discuss further with another scenarios.
Scenario 2
Place of Supply- Bill to Ship To Scenarios
 The principal place of business of the third party in the above scenario is
Karnataka, and
 the place of supply will be Karnataka.
 This is an interstate transaction, and
 is liable for IGST.
 The second part of the transaction between Maruthi Traders and Prime
Hardwares will be intrastate, and
 CGST+SGST will be charged.
Place of Supply- Services
Place of Supply- Services General Rule
 Under Service Tax , the provision of a taxable service was subject to service tax.
 Service tax is levied by the Central government and
 was applicable irrespective of whether the provision of service is interstate or intrastate.
 However, under GST, the place of supply of service will determine the type of tax
applicable on the service.
 This is based on the concept of GST being a ‘destination based consumption tax’, where
tax will accrue to the State where the supply is consumed.
 Hence, it is important to determine the place of supply of services.
 The rules for determining the place of supply of services are different from the rules for
determining the place of supply of goods.
 In case of goods, the movement of goods largely decides the place of supply.
 Services, being intangible, have no fixed manner of delivery.
 Also, in certain cases of supply of service, the location of the supplier and/or recipient
may not be fixed or even ascertainable.
 we will discuss how to determine the place of supply of services.
Place of Supply- Services -Supply to a registered person within the
same state
 When a service is supplied to a registered person within the same state,
the taxes applicable are CGST and SGST.
 For example: Mandeep Designers, whose registered place of business is
Bhubaneswar, Odisha, supplies fashion designing services to Altra
Fashions, a registered apparel manufacturer in Cuttack, Odisha.
 Location of supplier: Bhubaneswar, Odisha
 Place of supply: Cuttack, Odisha
 This is an intra-state supply and the taxes applicable are CGST and SGST.
Place of Supply- Services -Supply to a registered person within
the same state
Place of Supply- Services Supply to a registered person in a
different state
 When a service is supplied to a registered person in a different state, the
tax applicable is IGST.
 For example: Mandeep Designers, whose registered place of business is
Bhubaneswar, Odisha, supplies fashion designing services to Rajesh
Apparels, whose registered place of business is Hyderabad, Telangana.
 Location of supplier: Bhubaneswar, Odisha
 Place of supply: Hyderabad, Telangana.
 This is an interstate supply, and the tax applicable is IGST.
Place of Supply- Services Supply to a registered person in a
different state
 Place of Supply- Services- to an unregistered person
 In the GST regime, when a service is supplied to an unregistered person,
there can be 2 scenarios:

 Scenario 1: The address of the recipient exists in the records of the

supplier

 Scenario 2: The address of the recipient does not exist in the records of
the supplier
Place of Supply-Services- an unregistered person-Address exists
–within State
 Scenario 1:

 When a service is supplied to an unregistered person whose address

exists in the supplier’s records,
 the place of supply will be the location of the recipient in the supplier’s
records.

 Supply within the same state when a service is supplied to an

unregistered person whose address is in the supplier’s records

 the taxes applicable are CGST and SGST

Place of Supply-Services-an unregistered person-Address exists
–within State

 For example: Mandeep Designers, whose registered place of business is

Bhubaneswar, Odisha, provides fashion designing services to Ramesh
Clothing, an unregistered dealer.
 In the records of Manish Designers, the address of Ramesh Clothing is in
Puri, Odisha.
 Location of supplier: Bhubaneswar, Odisha
 Place of supply: Puri, Odisha
 This is an intrastate supply, and the taxes applicable are CGST and SGST.
Place of Supply-Services-an unregistered person-Address exists
–within State
Place of Supply-Services-an unregistered person-Address exists
–to a different State
 When a service is supplied to an unregistered person whose address in the
supplier’s records is in a different state, the tax applicable is IGST.
 For example: Mandeep Designers, whose registered place of business is
Bhubaneswar, Odisha, supplies fashion designing services to Lakshmi
Apparel, an unregistered dealer.
 In the records of Mandeep Designers, the address of Lakshmi Apparel is in
Kolkata, West Bengal.
 Location of supplier: Bhubaneswar, Odisha
 Place of supply: Kolkata, West Bengal
 This is an inter-state supply and the tax applicable is IGST.
Place of Supply-Services-an unregistered person-Address exists
–to a different State
Place of Supply-Services-an unregistered person and address not available
 Scenario 2: When a service is supplied to an unregistered person whose
address does not exist in the supplier’s records, the place of supply will be
the location of the supplier
 Example: Mandeep Designers, whose registered place of business is
Bhubaneswar, Odisha, provides fashion designing service to a customer,
whose address is not available in their records.
 Location of Supplier: Bhubaneswar, Odisha
 Place of Supply: Bhubaneswar, Odisha
 This is an intrastate supply, and the taxes applicable are CGST and SGST.
Place of Supply-Services- an unregistered person and address not available
Place of Supply- Specific Services
 These were the general rules for determining the place of supply of services.
 However, specific rules for determining the place of supply of certain services
have been laid down.
 Let us now understand how to determine the place of supply in case of certain
specific services.

 Immovable Property
 Restaurant and Catering Services, Personal grooming etc
 Training & performance
 Admission to Cultural, Artistic, Sporting etc events & Amusement Parks &
services ancillary thereto
 Organising of a cultural, artistic, sporting etc event including in relation to
conference, fair etc
Place of Supply- Specific Services
 Transportation of goods including by mail or courier
 Transportation of passengers
 Services on board a conveyance like Vessel or aircraft, train or motor
vehicle etc
 Telecommunication services
 Banking and Other Financial services
 Insurance services
 Advertisement Services to Govts.
Place of Supply-Immovable Property
 Services provided directly in relation to an immovable property
 Lodging in an immovable property
 Accommodation in an immovable property for organizing a function
 Any services supplementary to the services mentioned above
Place of Supply- Services provided directly in relation to an
immovable property
 This includes services provided by architects, interior decorators, surveyors,
engineers, etc.
 For example: Nani Hotels, registered in Shimla, Himachal Pradesh, is
constructing a hotel in Dehradun, Uttarakhand. The interior decoration of the
hotel is being done by Ulta Interiors, whose registered place of business is
Dehradun, Uttarakhand.
 For the supply of interior decoration service,
 Location of supplier: Dehradun, Uttarakhand
 Place of supply: Even though the recipient, Nani Hotels’ registered place of
business is Shimla, Himachal Pradesh, the place of supply will be the location
of the hotel, i.e Dehradun, Uttarakhand
 This is an intrastate supply and the taxes applicable are CGST and SGST
Place of Supply Services provided directly in relation to an immovable
property
Question Time
 Q 6. Real estate agent in Delhi charges brokerage fee to Company A located in
Chandigarh for assistance in getting a commercial property in Kolkata. Which
is the place of supply in this case?
 (a) Delhi
 (b) Chandigarh
 (c) Kolkata

 Ans. (c) Kolkata

Place of Supply-Lodging in an Immovable Property

 This includes accommodation provided by a hotel, inn, guest house,

homestay, club, campsite, house boat, etc.
 For example: Nani Hotels in Shimla, Himachal Pradesh, provides lodging to
Mr. Aman, a registered dealer in Jaipur, Rajasthan, for an official seminar.
 Location of supplier: Shimla, Himachal Pradesh
 Place of supply: Shimla, Himachal Pradesh.

 This is an intrastate supply and the taxes applicable are CGST and SGST
Place of Supply-Lodging in an Immovable Property
Place of Supply Accommodation in an immovable property
for organizing a function
 This includes accommodation for organizing any official, social, cultural,
religious or business function.
 For example: Shilpa Automobiles Pvt Ltd, a registered dealer in
Gurugram, Haryana, books the conference hall of Nani Hotels in Shimla,
Himachal Pradesh, for 3 days for an official conference.
 Location of supplier: Shimla, Himachal Pradesh
 Place of supply: Shimla, Himachal Pradesh
 This is an intrastate supply and the taxes applicable are CGST and SGST
Place of Supply Accommodation in an immovable property for
organizing a function
Place of Supply Any services supplementary to the services mentioned
above
 For example: Shilpa Automobiles Pvt Ltd, along with booking the
conference hall of Nani Hotels in Shimla, Himachal Pradesh, also orders food
and beverages for his guests for an official conference.

 Location of supplier: Shimla, Himachal Pradesh

 Place of supply: Shimla, Himachal Pradesh

 This is an intrastate supply and the taxes applicable are CGST and SGST
Place of Supply Any services supplementary to the services mentioned
above
Place of Supply –Immovable Property-Issues
 Taking the above example, in the current regime, Shilpa Automobiles Pvt Ltd in
Haryana can take input credit of the tax paid on hotel charges in Himachal
Pradesh.
 However, in the GST era, place of supply of services provided in relation to
immovable properties is the location of the immovable property.
 This implies that in these scenarios, the taxes applicable will be CGST and
SGST.
 Note that CGST and SGST credit of one state cannot be used to set-off the
liability of another state.
 In such a case, when a registered person takes the services of an immovable
property in a different state, the person will not be able to take input credit on
the service taken from another state.
 Hence, in the GST regime, Shilpa Automobiles Pvt Ltd, registered in Haryana,
cannot take input credit of the CGST and SGST paid in Himachal Pradesh.
 Place of Supply- Specific Services
Type of Place of
Type of Service Example
recipient supply
Raj Caterers in Mumbai, Maharashtra,
provides catering services to Girish
Automobiles for their annual sales event in
Mumbai.
Restaurant and catering
Not applicable Location of supplier: Mumbai, Maharashtra
services
Place of supply: The catering service is
performed in Mumbai, Maharashtra
This is an intrastate supply and the taxes
Location where
applicable are CGST +SGST
the service is
A Chartered Accountant registered in
rendered
Bangalore, Karnataka, takes an Ayurveda
Personal grooming,
treatment at Santhigiri Ayurveda Centre in
fitness, beauty
Kerala.
treatment and health
Not applicable Location of supplier: Kerala
services, including
Place of supply: The Ayurveda treatment is
cosmetic and plastic
performed in Kerala
surgery
This is an intrastate supply and the taxes
applicable are CGST + SGST
 Place of Supply- Specific Services
Type of
Type of Service Place of supply Example
recipient
Alom Institute of Fashion Designing in Bangalore,
Karnataka, provides fashion designing training to
Vishnu Apparel, registered in Chennai, Tamil
Nadu. The training is conducted at Alom
Registered Location of the Institute’s premises.
person recipient Location of supplier: Bangalore, Karnataka
Place of supply: Location of Vishnu Apparel is
Chennai, Tamil Nadu.
Services in relation to This is an interstate supply and the tax
training and performance applicable is IGST.
appraisal
Alom Institute of Fashion Designing in Bangalore,
Karnataka, provides an undergraduate course in
fashion designing to students at its premises.
Location where
Unregistered Location of supplier: Bangalore, Karnataka
the service is
person Place of supply: The training is provided in
rendered
Bangalore, Karnataka
Hence, this is an intrastate supply and the taxes
applicable are CGST and SGST
 Place of Supply- Specific Services
Type of Place of
Type of Service Example
recipient supply

A person in Hyderabad, Andhra Pradesh, buys

tickets for the Island Tourism Festival in
Services provided Andaman and Nicobar Islands from the
through admission to a Department of Tourism of Andaman and
cultural, artistic, Location Nicobar Islands.
sporting, scientific, Not applicable where the Location of supplier: Andaman and Nicobar
educational or event is held Islands
entertainment event or Place of supply: The Island Tourism Festival
amusement park is held in Andaman and Nicobar Islands
This is an intra-Union Territory supply and
the taxes applicable will be CGST+ UTGST
 Place of Supply- Specific Services
Type of Place of
Type of Service Example
recipient supply
Jayant Event Organizers, registered in
Mumbai, provides event management services
to Girish Automobiles, registered in Delhi, for
their annual sales event in Mumbai.
Registered Location of
Location of supplier: Mumbai
person the recipient
Place of supply: Girish Automobiles is located
Services provided in Delhi.
through organisation of This is an interstate supply and the tax
a cultural, artistic, applicable is IGST.
sporting, scientific, Jayant Event Organizers, in Mumbai, provides
educational or event management services to a customer
entertainment event located in Rajasthan, for her wedding
Location reception in Mumbai.
Unregistered
where the Location of supplier: Mumbai
person
event is held Place of supply: The wedding is held in
Mumbai
This is an intrastate supply and the taxes
Place of Supply- Specific Services
 You can note that in case of services where the place of supply is the
location at which the service is rendered or where the event is held,
 the type of supply is always intrastate.
Place of Supply Imports
 The location of the importer is the place of supply of goods in case of
import of goods into India.
 It may be noted that importer has not been defined in the IGST Act, 2017.
 Therefore, the meaning given under Customs Act, 1962 will have to be
taken. As per Section 2(26) of the Customs Act, 1962 "importer", in relation
to any goods at any time between their importation and the time when they
are cleared for home consumption, includes any owner or any person
holding himself out to be the importer.
Place of Supply-Exports

 The location of supply of goods exported from India

 shall be the location outside India.
 Thank you

Note: Some of the inputs have been drawn from Tally & other web
materials to be used only for educational purposes.