Place of supply of goods and services within India :
♦ The basic principle behind ‘place of supply’ provisions is that GST is consumption based tax. The tax is payable in the State in which goods or services or both are consumed.
♦ If location of supplier of service and place of supply are in same State or Union Territory, CGST and SGST/UTGST payable.
♦ If location of supplier of service and place of supply are in different States or Union Territories, IGST is payable.
♦ Supply of services in the course of inter-State trade or commerce means any supply where the location of the supplier and the place of supply are in different States or two different Union Territories or a State and Union Territory.
♦ Supply of services to or by a SEZ developer or an SEZ unit, shall be deemed to be a supply of services in the course of inter-State trade or commerce.
♦ Supply of services where the location of the supplier and the place of supply are in the same State or same Union Territory shall be treated as intra-state supply. However, this is subject to the provisions of section 12 of IGST Act. Further, the intra-state supply of services shall not include supply of services to or by a SEZ developer or to or by an SEZ unit.
♦ Specific provisions have been made for place of supply in case of services directly relating to immovable property, restaurant, training and appraisal, admission to events, transportation of goods and passengers, services on board a conveyance, telecom services, banking and FI services, insurance services and advertisement services to Government within India.
♦ In case of services other than those specified above, the place of supply of services – (a) made to a registered person shall be location of service recipient – section 12(2)(a) of IGST Act (b) made to any person other than a registered person shall be (i) the location of the recipient where the address on record exists, and (ii) the location of the supplier of services in other cases.