“location of the recipient of services” means, —
(a) where a supply is received at a place of business for which the registration has been obtained, the location of such place of business;
(b) where a supply is received at a place other than the place of business for which registration has been obtained (a fixed establishment elsewhere), the location of such fixed establishment;
(c) where a supply is received at more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the receipt of the supply; and
(d) in absence of such places, the location of the usual place of residence of the recipient;
Given that services are not tangible, the determination of the location of the recipient of service could result in complications. The ‘location of the recipient of services’ is essential to determine whether the supply is an inter-State or an intra-State supply, as such location is the residuary clause for determining the place of supply of services.
Broadly, the meaning given to the phrase “location of the recipient of services” is oriented towards determining the place of supply of the services. The most relatable location of the recipient can be determined in the following order – if the place of supply of the service happens to be:
(a) a ‘place of business’ which is a registered place of business, such place;
(b) a ‘place’ which is a fixed establishment (i.e., a place of business not registered, but having a sufficient degree of permanence involving human and technical resources), such fixed establishment;
(c) at multiple ‘places’ which may include places of business or fixed establishments, that one place to which the supply is most directly attributable;
(d) a place that cannot be identified from the above three clause, the usual location of the recipient (address where the person is legally registered/ constituted in case of recipients other than individuals)