Place of Supply of Goods/Services Under GST: GST is the abbreviated form of Goods and Service Tax. The Government of India implemented GST on 1st July 2017. GST is a type of value-added tax levied on the country’s supply and consumption of goods and services. GST is a consumption-based tax is received by the state or central government where the goods are consumed. For the fair calculation of GST, the place of supply of the goods and services should be appropriately defined. It should be specified whether the supply took place within the state or outside the state. In this article, we will discuss the place of supply of goods and services under GST.
Place of Supply for Goods
The Goods and Service Tax Act lays down specific rules regarding the place of supply. Here are some of the key points to determine the rightful place of supply:
- When the supply involves the movement of goods, the place of supply will be considered the location at which the good’s movement is terminated for delivery to the recipient.
- When the supply does not involve the movement of goods either by the supplier or the recipient, the place of supply is considered the location of such goods when delivering to the recipient.
- Certain goods must be assembled or installed at a site, maybe an office or a factory. In the case of such goods, the place of supply will be the location where such goods are assembled or installed.
- When the goods are supplied through a conveyance, maybe a vessel, an aircraft, a train, or a motor vehicle. The place of supply for such goods will be deemed the location at which such goods are taken on board or loaded on the conveyance.
- In the case of goods imported into India, the importer’s location will be considered as the place of supply as per the GST rules.
- In the case of goods exported out of India, the location where the goods are delivered will be considered as the place of supply for GST calculation.
Place of Supply for Services
In terms of services, the place of supply is defined differently as per the GST rules. The following points explain the place of supply for services as per GST:
- If the services are provided to a registered person, then such a registered person’s location will be considered as the place of supply.
- If the service is provided to any person other than a registered person. In that case, the recipient’s location where the address exists on record shall be considered the place of supply for such service.
- If the service is provided to any person other than a registered person. In that case, the location of the supplier of such services will be considered the place of supply if there exists no record of address.
Place of Supply for Services In Special Cases
Apart from the supply of services in the cases mentioned above, certain specific cases are mentioned in the GST act. Let us have a look at these cases:
Place of Supply For Services To an Immovable Property
Services provided concerning an Immovable property includes services, provided by architects, interior designers, painter, carpenters, engineers, and other experts. The place of supply of such services shall be the location of such immovable property as per GST.
Place of Supply for Hotel, Guest House, Club Services
Services such as accommodation in a hotel or guest house, organising a marriage or any other function, any official or social gathering in a resort or hotel premises comes under this category. The place of supply for such kind of services will be the hotel, guest house or club location.
Place of Supply For Restaurant and Catering Services
Services including healthcare, personal grooming, catering and restaurants fall under this category. The place of supply for such services will be the location where such services are actually performed.
Place of Supply For Cultural Events
Admission to cultural, artistic, scientific or educational events falls under the category of cultural events. In the case of services provided under cultural events, the place of supply is considered as the location where such an event was actually held.
Place of Supply For Transportation Services
For transportation services, such as mail or courier, the place of supply will be the location of a person in case the service is provided to a registered person. If the transportation service is provided to any person other than a registered person, then the place of supply shall be the location where the goods are handed for transit.
Place of Supply For Passenger Transport Service
The place of supply for passenger transport services shall be the person’s location in case the service is provided to a registered person. If the service is provided to any person other than a registered person, then the place of supply will be the location at which the person embarks on the mode of conveyance for the journey.
Place of Supply For Insurance Services
The place of supply for insurance services shall be the person’s location if the insurance service is provided to a registered person. If the service is provided to any person other than a registered person, then the recipient’s location will be treated as the place of supply.
Place of Supply Where The Location of The Supplier or Recipient Is Outside India
When goods are supplied outside India, the recipient’s location will be considered as the place of supply as per the GST rules. In case the recipient’s location is not available, the place of supply will be the location of the supplier of such goods or services.