For understanding about clarifications, we have to analyse following definitions. For complete definition, please click on hyperlink

(i)

Section 2(17) of IGST Act - "Online information or database access or retrieval services"

(ii)

Section 2(44) – “electronic commerce”

(iv)

Section 2(45) ― “electronic commerce operator”

4.1

Section 12(2) of the IGST Act

The place of supply of services, except the services specified in sub-sections (3) to (14),

(a) made to a registered person shall be the location of such person;

(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.

4.2

Section 31(2)

Tax invoice for supply of services shall be showing the description, value, tax charged thereon and such other particulars as may be prescribed

4.3

Rule 46(f)

Tax invoice shall contain following particulars, namely

name and address of the recipient and the address of delivery, name of the State and its code, if such recipient is un-registered and where the value of the taxable supply is less than Rs.50,000 and the recipient requests that such details be recorded in the tax invoice;

[1][Provided that [2][in cases of

supply of online money gaming or]

any taxable service is supplied by or through an eco or

supply of OIDAR services

to unregistered person,

irrespective of the value of such supply, a tax invoice shall contain the [3][name of the state of the recipient and the same shall be deemed to be the address on record of the recipient]

4.4

A conjoint reading of clause 12(2)(b) of the IGST Act, Section 31(2) of the CGST Act and proviso to rule 46(f) of CGST Rules leads to a conclusion that

in respect of supply of services made to URP and irrespective of the value of supply,

the supplier of following services is mandatorily required to record the name of the State of the URP on the tax invoice,

(i) Supply of online money gaming or

(ii) Supply of taxable services by or through an electronic commerce operator or

(iii) Supply of online information and database access or retrieval (OIDAR) services.

4.4

Recording of the name of State of the URP on the tax invoice in respect of said supply of services shall be deemed as the address on record of the recipient for the purpose of determination of place of supply of the said services u/s 12(2)(b) of IGST Act.

Accordingly, in such cases, the place of supply of such services shall be considered as the location of the recipient of the services as per section 12(2)(b)(i) of IGST Act.

4.5

It is also observed that a combined reading of the definitions of ‘electronic commerce’ and ‘electronic commerce operator’ as per section 2(44) and section 2(45) of CGST Act, along with rule 46(f) of CGST Rules, leads to an understanding that

all services supplied to URP over digital or electronic network, either by the supplier using his own digital or electronic facility / platform or through any other electronic or digital platform owned and operated by an independent electronic commerce operator, will be covered under proviso to rule 46(f) of CGST Rules.

4.5.1

It is, accordingly, clarified that proviso to rule 46(f) of CGST Rules shall be applicable in respect of all the online supplies of services supplied to an unregistered recipient, in addition to the supply of online money gaming and OIDAR services.

Some of the examples of such services are subscription of e-newspapers and e-magazines, online subscription of entertainment services (e.g. OTT platforms), online telecom services, digital services through mobile applications etc.

4.5.2

For the purpose of recording the name of the State of the unregistered recipient, supplier should devise suitable mechanism to ensure collection of such details from unregistered recipient before making any supplies to him.

4.5.3

If the supplier fails to issue invoice in accordance with the said provisions by not recording correct mandatory particulars, including recording of name of State of unregistered recipient in respect of such supplies, he may be liable to penal action u/s 122(3)(e) of CGST Act