Place of Supply Under GST

Place of Supply (POS) in GST determine the jurisdiction to recognise the revenue. Understand how to know POS for goods, services for domestic, exports, imports

This document covers

Importance of Place of Supply in GST
Goods in case of Domestic Supplies (other than import and export)
Goods imported into or exported from India
Services in case of Domestic Supplies (other than import and export)
Services where location of supplier or location of recipient is outside India

1. Importance of Place of Supply in GST

GST is a destination-based consumption tax i.e., GST is levied at the point of consumption of such supply. The 'Place of Supply' (POS) means the place where the supply is consumed. The place of supply determines the jurisdiction where the revenue should reach. The place of supply helps in determining which tax is to be levied on each transaction i.e., IGST or CGST and SGST/UTGST (intra state or interstate)

The place of supply rules have been broadly divided into 2 categories

Supplies other than imports and exports
Supplies which are imports and exports

2. Goods in case of Domestic Supplies (other than import and export) (Section 10)

If the supply involves movement of goods: The place of supply is the location of the goods at the time when the movement of goods ends for delivery to recipient.
If the supply involves movement of goods where goods are delivered to recipient on the instruction of third person (bill to ship to model): The place of supply is the principal place of business of such third person and not the actual recipient.

EXAMPLE:

Rama Enterprises having its principal business at Hyderabad, Telangana asked Krishna & Co, Maharashtra to deliver 10 television sets to their one of the buyer Lakshman Enterprises, Andhra Pradesh. Here as it comes under bill to ship to model, the place of supply is the place of Rama Enterprises, Telangana.

If the supply does not involve movement of goods: The place of supply is the location of goods at the time of delivery to recipient
If the supply involves installation or assembly of goods: The place of supply is the place of such installation or assembly of goods
If the supply involves goods supplied on board a conveyance: The place of supply of goods supplied on board a conveyance like flight, train, bus, vessel, motor vehicle is the location where such goods have been taken on board.

3. Goods imported into or exported from India (Section 11)

Import of Goods: The place of supply is the location of importer in case of import of goods.
Export of Goods: The place of supply is the location outside India in case of export of goods.

4. Services in case of Domestic Supplies (other than import and export) (Section 12)

As per this rules, the location of supplier and recipient should be in India

If the services are in relation to an immovable property or lodging accommodation in a hotel/boat/vessel etc: The place of supply is the location of the immovable property or the boat or the vessel is located or intended to be located.
NOTE:
If the immovable property / boat / vessel is located outside India, then the place of supply is Location of Service recipient
Restaurant and catering service, personal grooming, fitness, beauty and health care services: The place of supply is the location where such services are actually performed.
EXAMPLE:
Ms Radha, a makeup artist at Kolkata goes to Hyderabad, Telangana for doing the makeup at a Marathi wedding function. Here the place of supply is Hyderabad, Telangana as services is performed there.
Admission to events (Cultural, sporting, Educational, Scientific, Artistic, Entertainment) / amusement park / other places: The place of supply is the place where the event is actually held or where the park or such place is located
Services supplied on board a conveyance: The place of supply is the location of the first scheduled point of departure of that conveyance or journey.
Financial and Stock broking services: The place of supply of banking, financial and stock broking services to any person is the location of service receiver which are in the records of supplier. If no records available, place of supply is the location of supplier of services.
Advertisement Services to Government: The place of supply shall be taken as each of such states/union territories where the advertisement is broadcasted.
Telecommunication Services:
1. If the supply involves Fixed telecommunication line, leased circuits, internet leased circuit, cable or dish antenna: The place of supply is the location where telecommunication line, leased circuit, cable or dish antenna is installed for receipt of services.
2. Post paid mobile connection and internet services: Location of billing address of recipient of services in the records of service provider. If the address is not available, the place of supply is location of service provider.
3. Pre-paid mobile connection, internet services and DTH provided through selling agent, reseller or distributor: Address of the selling agent/reseller/distributor

Other Services in case of domestic supplies that has different rules for B2B and B2CS.

Service Type & Description	If B2B Supply	If B2CS Supply
h. Training and Performance appraisal services: The place of supply of these services depends upon whether the supply is B2B or B2CS	The place of supply is the location of service receiver.	The place of supply is the place where the service is actually performed.
i. Organization of events: The place of supply of these services depends upon whether the supply is B2B or B2CS.	The place of supply is the location of service receiver	The place of supply is the place where the event is held. If the event is held outside India, the place of supply is location of service receiver.
j. Transportation of goods including mail or courier: The place of supply of these services depends upon whether the supply is B2B or B2CS.	The place of supply is the location of service receiver.	The place of supply is the place at which such goods are handed over for their transportation.
k. Passenger Transportation services: The place of supply of these services depends upon whether the supply is B2B or B2CS.	The place of supply is the location of service receiver.	The place of supply is the place at the passenger embarks on the conveyance for a continuous journey If the address of the passenger(unregistered person) is available on the records of the supplier, the location of such unregistered person In other cases, the location of supplier of services
l. Insurance Services: The place of supply of these services depends upon whether the supply is B2B or B2CS.	The place of supply is the location of service receiver.	The place of supply is the location of service receiver which are available in the records of service provider.
m. Rest of the services other than those covered above: This is a default rule and this rule is applicable if the supply of services does not cover in above.	The place of supply is the location of service receiver.	The place of supply is the location of service receiver which are available in the records of service provider. In other cases, location of service provider.

5. Services where location of supplier or location of recipient is outside India (Section 13)

Services supplied in respect of goods which are required to be made physically available: The place of supply is the location where the services are actually performed.
Services which require the physical presence of the service receiver or the person acting on his behalf with the supplier of services: The place of supply is the location where the services are actually performed.
Services supplied directly in relation to an immovable property including accommodation in hotel, boat, vessel: The place of supply is the location where the immovable property is located to intended to be located.
Admission to organization of event: The place of supply is the place where the event is actually held.
Services supplied by a banking company or financial institution or NBFC to account holders: The place of supply is location of supplier of services.
Transportation of goods other than by way of mail or courier: The place of supply is place of destination of such goods
Passenger transportation services: The place of supply is the place where the passenger embarks on the conveyance for continuous journey
OIDAR Services: The place of supply is location of service receiver.
Services provided on board a conveyance: The place of supply is the first scheduled point of departure of that conveyance for the journey.