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We have already discussed the place of supply of goods under GST, now in this article we will review the determination of the place of supply in case of Services. There are certain general rules associated with the determination of the place of supply of services. We will discuss them in detail here.
Determination of place of supply of services is a bit tricky as compared to the supply of goods. In the case of goods, the general rule says that the place of consumption of goods is the place of supply. However, in the case of services, it’s not that easy to track the place of consumption, because many a time service recipients are not registered. For example, in the case of online consultancy, it’s hard to keep track of the address of every person to whom such services are provided. We have already covered the topic of time/point of taxation earlier.
Table of Contents
Let’s categorize the supply of services into two main categories:
Provisions relating to the supply of services within India are covered under section 12 of the Integrated Goods and Service Tax Act, 2017. When we say domestic supply, it simply implies that both supplier and recipient are located in India. These domestic transactions include both inter-state as well as the intra-state supply of goods.
There are two subheads in this section:
When service recipient is registered under GST
When the service recipient is registered under GST, the place of supply will be the location of such a service recipient. Now the question is what will be considered as the location of the recipient.
The following place will be deemed to be the location of the service provider:
When service recipient is not registered under GST
In case the registered person is not registered under the provisions of GST, in such cases following place will be deemed to be the place of supply of services:
2. International supply of Services-
Provisions relating to the supply of services outside India or receiving any services from outside India are covered under section 13 of Integrated Goods and Service Tax Act, 2017. When either the supplier or services or recipient of services is located outside India, then such supply will be deemed to be an international supply of services.
General Rule to be followed
In a case of the global supply of services, the place of supply will be:
With this, we have covered the general rules associated with the determinations of a place of supply of services. Other than these general rules there are certain exceptions related to the place of supply of services.
It is critical to identify place of supply under GST (services) in order to impose appropriate type of GST. If you wish to know more on GST and related laws, feel free to contact Enterslice.
Read our article:
GST and Input Tax Credit on Promotional Products
Ashish M. Shaji has done his graduation in law (BA. LLB) from CCS University. He has keen interests in doing extensive research and writing on legal subjects especially on corporate law. He is a creative thinker and has a great interest in exploring legal subjects.
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