30/01/2017
As per section -5 Place of Supply of Goods can be understood as
follows:
1. Where the supply
involves movement of Goods, the place of at which the Goods are delivered to the
receiver will be the Place of Supply.
2. Where the Supply
does not involve movement of Goods then in such case the Place of
Supply shall be location of such place at the time of delivery to the receiver.
3. Where goods are
assembled or installed at site, Place of Supply shall be place of such installation
or assembly.
4. Where Goods Are
Supplied on board of a conveyance say and aircraft, ship, train or motor
vehicle the Place of Supply will be the location at which such
Goods are taken on Board.
5. Where Place of
Supply cannot be determined by above then the Place of Supply shall be
determined in accordance with the Law made by the Parliament on the
recommendation of the Council.
Now let us understand
section 6 Place of Supply of Services. First, let us know the location of
Service provider.
1. Location of
Business Establishment where it is registered under the GST Act.
2. Location of Fixed
Establishment where supply is made from a place not registered under GST.
3. Where Supply is
made from more than one establishment, the location of establishment most
directly concerned with the provision of Supply.
4. In absence of such
places the location of the usual residence of such person shall be Place of
Supply.
Now, let us understand location of
Service
Receiver.
Location of Business
Establishment where Supply is received at a place registered under the GST Act.
1. Location of Fixed
Establishment where supply is received from a place not registered under GST.
2. Where Supply is
made from more than one establishment, the location of establishment most
directly concerned with the receipt of the Supply.
3. In absence of such
places the location of the usual residence of such person shall be Place of
Supply.
On the basis of above
we can find the place of Supply.
1. Where the service
is provided to a registered person then the location of such service receiver.
2. Where services
provided to an unregistered person then it will be the address of such
recipient and if it is not available then the location of such receiver.
3. In case of
immovable property Place of supply of services will be the place of immovable
property where it is located or likely to be located.
4. In other cases,
place of supply of services will be the actual place of supply where the
services are provided such as restaurant & catering, training, fitness etc.
5. In case of events,
the place of supply of services will be on the admission to such event at the
actual place where the event takes place.
6. In case of services
provided for conference, fair, exhibition etc. then the registered place of
such recipient or the location of such event if the recipient is not
registered.
7. In case of services
of transportation of goods, then the registered place of such recipient or the
location of such goods handed over if not registered.
8. In case of service
by way transportation of passengers, if registered person then location of such
person otherwise location of embarkation of the person.
9. Services under
telecommunication, such as data transfer, broadcasting etc. services under
fixed line then location where such fixed lines are installed, in case of
mobile connection – the location of billing address, in case of prepaid
services for mobile or internet then the location where such payment is
received.
We will have to take
each individual case to understand the place of supply of services. In case of
banking, financial services, insurance, lodging services by hotels, property on
rentals, it would differ.
Let us take a few
examples to understand the various aspects of supply of services.
1. Supply of food by a
private caterer in the train – the place of supply of service will be the first
point of departure of the conveyance.
2. Transportation of
goods – a business located in Mumbai which is registered under GST has to
transport goods to Delhi, then the place of service will be Mumbai but when the
business of Mumbai based businessmen is not registered under GST then the
location where the goods are handed over to the transporter ie Mumbai.
3. In case of
insurance business – Mr X is residing at Mumbai and is registered under GST,
avails insurance service from company located at Kolkata, the place of service
will be Mumbai, but, if Mr X is not registered under GST then the location of
the service receiver in the records of the service provider that is Mumbai.
To conclude in
general, we take the following as place of services
a. when supply is made
to a registered person then location of such registered person.
b. when supply is made
to other person then address on records of such person or location of the
recipient otherwise location of supplier.
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About the author
RAHUL AGRAHARI
ACCOUNTS AND TAX CONSULTANTS
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