- About Place of supply
- Inter-State Supply of Goods & Services
- Intra-State Supply of Goods & Services
- Supplies in Territorial Waters
- Place of Supply
- Location of both Supplier & Recipient of Services is in India
- Recipient of Supply of Goods and/or Services
- Consideration for Supply
In simple terms, Place of supply means the place where a supply of goods or services is made & where the GST may be charged or paid. Determining the location of supply of services may be difficult especially in inter-state services. In some cases place of supply is determined by what is supplied rather than where the supplier or consumer belongs.
About Place of supply
Whenever there is a supply of goods or services, then for the purpose of GST it is essential to know the Place of Supply. The place of supply determines which type of GST is to be paid, whether IGST, CGST or SGST and how the dealers have to account for Input Tax Credit on purchase and Output Tax on sale.
‘Place of Supply’ under GST, is an important factor as it defines whether the transaction will be counted as –
- Inter-State (i.e. between two states)
- Intra-State (i.e. within the same state)
Accordingly the changeability of tax, i.e. SGST, CGST & IGST will be determined.
Inter-State Supply of Goods & Services
- Supply of goods & services, where the location of the supplier and the place of supply are within India in –
- Supply of goods or services or both –
Intra-State Supply of Goods & Services
- Supply of goods where the location of the supplier and the place of supply of goods are in the same State/Union territory.
Supplies in Territorial Waters
Place of Supply
Location of both Supplier & Recipient of Services is in India
- Where a supply is received at a registered place of business, then it means the location of such place of business;
- Where a supply is received at a place other than the registered place of business (a fixed establishment elsewhere), then it means the location of such fixed establishment;
- Where a supply is received at more than one establishment, then it means the location of the establishment most directly concerned with the receipt of the supply; and
- If cannot be identified, then it means the location of the usual place of residence of the recipient
- Representative – Any person located in the taxable territory representing such supplier for any purpose in the taxable territory shall get registered and pay IGST on behalf of the supplier.
- Appointee – If such supplier does not have a physical presence or does not have a representative for any purpose in the taxable territory, he may appoint a person in the taxable territory for the purpose of paying IGST and such person shall be liable for payment of such tax.
Recipient of Supply of Goods and/or Services
- Where a consideration is payable for the supply of goods or services or both, the person who is liable to pay that consideration
- Where no consideration is payable for the supply of good, the person to whom the goods are delivered or made available, or to whom use of the goods is given or made available.
- Where no consideration is payable for the supply of a service, the person to whom the service is rendered, and any references to a person to whom a supply is made shall be construed as a reference to the recipient of the supply and includes an agent acting as such on behalf of the recipient in relation to the goods or services or both supplied.
Consideration for Supply
In relation to Supply includes––
- Any payment made, whether in money or otherwise for the supply of goods or services, whether by the recipient or by any other person but shall not include any subsidy given by the Government.
- The monetary value of any act, in respect of, in response to, or for the inducement of, the supply of goods or services or both, whether by the recipient or by any other person but excludes any subsidy given by the Government.
- Except a deposit given in respect of the supply of goods or services shall not be considered as payment made for such supply unless the deposit is appropriated as consideration for the said supply.
In case you are confused about GST as a business owner, feel free to consult the GST experts at LegalRaasta. You can get comprehensive assistance on GST Registration and GST Return Filing. You can also use our GST software for doing end-to-end GST compliance.