Place of supply under GST

Last Updated On: Oct. 21, 2019, 10:33 p.m.
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Place Of Supply(POS) Under GST

Place of supply is descirbed as the place where gooods are shipped according to the reciept or place of order.

Time of supply means the point in time when goods/services are considered supplied’. When the seller knows the ‘time’, it helps him identify due date for payment of taxes.

Place of supply is required for determining the right tax to be charged on the invoice, whether IGST or CGST/SGST will apply.

Value of supply is important because GST is calculated on the value of the sale. If the value is calculated incorrectly, then the amount of GST charged is also incorrect.

Here is an example:

Location of Service Receiver Place of supply Nature of supply GST applicable
Maharashtra Maharashtra Intra-state CGST+SGST
Maharashtra Kerala Inter-state IGST

The place of supply of goods is the place where the ownership of goods changes.What if there is no movement of goods. In this case, the place of supply is the location of goods at the time of delivery to the recipient. For example: In case of sales in a supermarket, the place of supply is the supermarket itself.

Place of supply in cases where goods that are assembled and installed will be the location where the installation is done. The place of supply of services is the location of the service recipient. In cases where the services are provided to an unregistered dealer and their location is not available the location of service provider will be the place of provision of service.

Special provisions have been made to determine the place of supply for the following services:

  • Services related to immovable property
  • Restaurant services
  • Admission to events
  • Transportation of goods and passengers
  • Telecom services
  • Banking, Financial and Insurance services

1. Location of Supplier -Section 2(71):  It means - The place for which registration has been obtained(HO). Supply is made from a place other than the place for      which for which registration has been obtained, location of such fixed establishment(BO). Where supply is made from more than one place location of head          office or branch office which ever is more concerned.

2. Location of Recipient-Section 2(70):  It means - The place for which registration has been obtained(HO). Supply is received at a place other than the place for      which registration has been obtained, location of such fixed establishment (BO). Where supply is received at more than one place location of head office or          branch office which ever is more concerned.

3. Address of Delivery-Section-2(2):- It Means address of the recipient of goods on the tax invoice.

4. Address on Record-Section-2(3):- It means address of the recipient in the records of supplier.

  • Inter-State Supply(Section-7): Where there is border between the location of supplier and place of supply, the border might be of any state, UT, country or it may be a virtual border of SEZ the supply is called as inter-state.
  • Intra-State Supply(Section-8):  If there is no border between the location of supplier and place of supply the supply will be regarded as intra-state

Place of Supply in case of Goods:- Section 10: 

 Where the supplier and recipient both are located in taxable territory:-  

 1-Where Movement of Goods Involved- Place where Goods are Delivered

 2-Bill to ship to Model- Location of Buyer or the person who place the order

 3-Supply does not Involve Movement of Goods- Location of goods

 4-Assembly or Installation- Place of assembly or installation

 5-On Board Supply Of Goods- Place where Goods are taken on board.

Section 11:-  Where either the supplier or the recipient located in taxable territory:-  

 1- In case of Import - Location of Imports

 2- In case of Export POS will be outside India.

Place of supply in case of services

1. General Rule- POS will the place at which services are consumed. B2B-Location of  recipient. B2C- If address on record available then location of recipient          otherwise location of supplier. POS will location of recipient if known. Otherwise it will be location of Supplier. Note:- Here the B2B concept not applicable.

2. Immovable Property: Where the Immovable Property is located or intended to be located. However if it is located outside  India then then location of the          recipient. Where the Immovable Property is located or intended to be located.

3. Performance Related Services like Restaurant, personal grooming, fitness, cosmetic , catering etc.- Actual Place of Performance.         

    Note:- If goods imported for repair then no GST. 3-Event Linked B2B-Location of recipient. B2C-Place at which event is actually performed.

4. Transportation of goods- B2B-Location of recipient. B2C-Place of Loading. Destination of Goods.

5. Transportation of passenger- B2B-Location of recipient. B2C-Boarding Place. Boarding Place.

6. On Board Services- First Departure point.

7. Insurance Services- Location of recipient.

8- Banking Services- Location of recipient if known, Otherwise location of supplier. Location of Supplier

 


 

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