Place of supply under GST with Service Examples

The GST in India is levied on the basis of the destination principle. However, some countries follow the practice of defining rules to determine the place of taxation or place of supply under GST.

Therefore, the place of supply under GST is the place where the goods are actually delivered by the supplier to his recipient. However, in certain cases, if there is no actual movement of goods then the place of supply will be the actual location of such goods at the time of their delivery.

Further, a supply is taxable in a given jurisdiction only if the supply is considered to take place in that jurisdiction. Some other countries follow the alternate approach they first define the list of potential supplies within the scope of the tax. Later, they provide criteria for determining which of those supplies will be zero-rated as exports. However, both approaches give the same result.

Place of supply for Goods

Here is the list of places of supply of goods under GST. In the first column, you can see the circumstances, and in the second column the place of supply. This list is prepared as per IGST section 10.

Sr. no.	Circumstances	Place of Supply(POS)
1.	The Actual movement of goods for supply by the supplier, recipient or by any other person.	Location of goods at the time, when the movement of the goods terminates for delivery to the recipient.
2.	Delivery of goods by the supplier to a recipient or any other person: a)on the direction of a third person; b)whether acting as an agent or otherwise. c)Before or during the movement of goods c)either by way of transfer of documents of title to the goods or otherwise.	It is deemed that the third person received the goods and the place of such goods shall be the principal of business or such third person.
3.	Supply does not involve the movement of goods by the supplier or by the recipient. Example: 1. A trader in Goa hires a computer from a company in Maharashtra and at a later date decides to buy the computer. In this case, the location of goods at the time of supply is Goa. b) A contractor from Maharashtra constructs the house in Goa. In this case, the location of the house is Goa, whereas the place of supply for the material movement for constructing the house would be determined based on section 7(2)/3 qua contractor. c) A software company in UP develops a software program in the office of a Goa-based company. In this case, the location of the supply of the software is Goa.	Location of such goods at the time of delivery to the recipient

Assembly and supply of Goods on board

4.	Goods are supplied on board or conveyance, such as vessels, aircraft, trains, or motor vehicles. Example: The Food is supplied on board after carrying on board i.e from aircraft origination from Goa. Thus the place of supply will be at Goa from where the goods are taken on board.	Place of such installation or assembly
5.	Goods are supplied on board or conveyance, such as vessels, aircraft, trains, or motor vehicles. Example: The Food is supplied on board after carrying on board i.e from aircraft origination from Goa. Thus the place of supply will be at Goa from where the goods are taken on board.	Location at which such goods are taken on board.

Place of supply for Services

List of places of services as per IGST section 12.

Sr.no.	Nature of service	Place of supply
1.	Directly or in relation to Immovable Property including the services provided by architects, interior decorators, surveyors, engineers, and other related experts or estate agent.	Location at which immovable property or boat or vessel is located or intended to be located. However, if the location of the immovable property or boat or vessel is located or intended to be the place of supply shall be the location of the recipient.
2.	Any services provided by way of grant of rights to use immovable property or for carrying out or co-ordination of construction work	-As above-
3.	Services by way of lodging accommodation by a hotel, inn, guest house, homestay, club, or campsite, by whatever name called, and including a house boat or any other vessel	-As above-
4.	Services by way of accommodation in any immovable property for organizing any marriage or reception or matters related thereto, official, social, cultural, religious or business function including services provided in relation to such function at such property
5.	Any services are ancillary to the services referred to sr.no. (1), (2), and (3) above	-As above-
6.	a)Restaurant and catering services b) personal grooming c) fitness d)beauty treatment e)health services including cosmetic and plastic surgery	The location where the services are actually performed
7.	The training and performance appraisal of a registered person	The location of such a person
8.	A person other than a registered person	Place of performance

Services Part II

9.	The admission to a cultural, artistic, sporting, scientific, educational, entertainment event or amusement park or any other place and services ancillary thereto. For example. A Goa-based event manager organizes an event in Maharashtra. It allows admission to the employee of ABC-Maharashtra in the said event. The place of supply of this service is Maharashtra as the event is held there.	The place where the event is actually held or where the park or such other place is located
10.	The organization of a cultural, artistic, sporting, scientific, educational or entertainment event including the supply of services in relation to a conference, fair, exhibition, celebration, or similar events; or services ancillary to the organization of any of the events or services or assigning of sponsorship of any of the above events: (i) to a registered person (ii) to a person other than a registered person	i) Location of such a person ii) Location where the event is actually held. However, if the event is held outside India, the place of supply shall be the location of the recipient.
11.	Transportation of goods, including by mail or courier to: (a) a registered person shall be the location of such person; (b) a person other than a registered person	a)Location of such a person b)Location at which such goods are handed over for their transportation
12.	Passenger transportation service to,— (a) a registered person shall be the location of such person; (b) a person other than a registered person	a) location of such a person b) the place where the passenger embarks on the conveyance for a continuous journey
13.	Services on board a conveyance, including a vessel, an aircraft, a train, or a motor vehicle	The location of the first scheduled point of the departure of that conveyance for the journey.

Services Part III

14.	Telecommunication services including data transfer, broadcasting, cable, and direct-to-home television services to any person shall,— (a) in case of services by way of fixed telecommunication lines, leased circuits, internet leased circuit, cable, or dish antenna	The location where the telecommunication line, leased circuit or cable connection, or dish antenna is installed for receipt of services
	(b) In case of mobile connection for telecommunication and internet services provided on a post-paid basis	The location of the billing address of the recipient of services on the record of the supplier of services
	(c) In cases where mobile connection for telecommunication, internet service, and direct-to-home television services are provided on a pre-payment basis through a voucher or any other means,–– (i) through a selling agent or a re-seller or a distributor of subscriber identity module card or re-charge voucher	The address of the selling agent or re-seller or distributor as per the record of the supplier at the time of supply
	(ii) by any person to the final subscriber	The location where such prepayment is received or such vouchers are sold
	d) In other cases not covered in (B) and (c) above	The address of the recipient as per the records of the supplier
	If such pre-paid service is availed or the recharge is made through internet banking or another electronic mode of payment	The location of the recipient of services on the record of the supplier of services shall be the place of supply of such services.

Services Part IV

15.	For banking and other financial services, including stock broking services to any person the location of the recipient of services is not on the records of the supplier, the place of supply shall be the location of the supplier of services.	The location of the recipient of services on the records of the supplier of services
	Supply of insurance services shall,–– (a) to a registered person, be the location of such person	The location of such a person.
	(b)A person other than a registered person	The location of the recipient of services on the records of the supplier of services
	Supply of advertisement services to the Central Government, a State Government, a statutory body or a local authority meant for identifiable States. For example, The Income tax department hires the services of say Doordarshan, also located in Goa for an advertisement campaign to be broadcasted across the country.	In each of such States or Union territories and the value of such supplies specific to each State shall be in proportion to the amount attributable to services provided by way of dissemination in the respective States or Union territories as may be determined in terms of the contract or agreement entered into in this regard or, in the absence of such contract or the agreement, on such other basis as may be prescribed.

Services Part V

List of services as per IGST section 13

16.	Services supplied in respect of goods which are required to be made physically available by the recipient of services to the supplier of services, or to a person acting on behalf of the supplier of services in order to provide the services.	Place of performance
	when such services are provided from a remote location by way of electronic means. This clause shall apply in the case of services supplied in respect of goods that are temporarily imported into India for repairs and are exported after repairs without being put to any other use in India, than that which is required for such repairs.	The location where goods are situated at the time of supply of services
17.	Services supplied to an individual, represented either as the recipient of services or a person acting on behalf of the recipient, which requires the physical presence of the recipient or the person acting on his behalf, with the supplier for the supply of services.	Place of performance
18.	a) Supply of services supplied directly in relation to an immovable property b) Services supplied in this regard by experts and estate agents c)Supply of accommodation by a hotel, inn, guest house, club, or campsite, by whatever name called, d)Grant of rights to use immovable property e)Services for carrying out or co-ordination of construction work f)Architects or interior decorators’ services	The Place of supply is where the immovable property is located or intended to be located.

Services Part VI

19.	The supply of services supplied by way of admission to, or organization of a cultural, artistic, sporting, scientific, educational, or entertainment event, or a celebration, conference, fair, exhibition, or similar events, and of services ancillary to such admission or organization.	The location where the event is actually held.
20.	Services supplied by a banking company, a financial institution, or a non-banking financial company, to account holders; (b) intermediary services; (c) services consisting of hiring of means of transport, including yachts but excluding aircraft and vessels, for up to a period of one month	Location of supplier of services
21.	Supply of services of transportation of goods, other than by way of mail or courier	Place of destination of such goods
22.	supply in respect of passenger transportation services	The place of supply is a place where the passenger embarks on the conveyance for a continuous journey
23.	Supply of services provided on board a conveyance during the course of a passenger transport operation, including services intended to be wholly or substantially consumed while onboard	The first scheduled point of departure of that conveyance for the journey

Services Part VII

24.

Supply of online information and database access or retrieval services shall be the location of the recipient of services. For the purposes of this subsection, the person receiving such services shall be deemed to be located in the taxable territory, if any two of the following noncontradictory conditions are satisfied, namely:–– (a) the location of address presented by the recipient of services through the internet is in the taxable territory; (b) the credit card or debit card or store value card or charge card or smart card or any other card by which the recipient of services settles payment has been issued in the taxable territory; (c) the billing address of the recipient of services is in the taxable territory; (d) the internet protocol address of the device used by the recipient of services is in the taxable territory; (e) the bank of the recipient of services in which the account used for payment is maintained is in the taxable territory; (f) the country code of the subscriber identity module card used by the recipient of services is of taxable territory; (g) the location of the fixed landline through which the service is received by the recipient is in the taxable territory.

Location of the recipient of services

Frequently asked questions

Credit to State on the billing or Service Rendered

In the case of service supplied, should the credit be given to the state where it is billed or the state it is rendered?

Tax will be collected in the State from which the supply is made. The supplier will collect IGST and the recipient will take IGST credit.

About the Place of Supply

Find The place of supply in GST, the place of supply of services under GST, place of supply of services in GST with an example. Know the place of supply meaning, place of supply of goods, place of supply in case of immovable property, etc. Read GST place of supply rules as per GST Sections and more.