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PLACE OF SUPPLY OF GOODS OR SERVICES OR BOTH
Guide on section 12 of IGST Act - ...
Guide on section 12 of IGST Act - Place of supply of services where location of supplier and recipient is in India
Contents
Para |
Topics |
Relevant Section/Rules/N/C/O |
Purpose of Section 12 |
NA |
|
Conditions for applicability of Section 12 to determine POS |
Section-12(1) |
|
General provision to determine place of supply of services |
Section-12(2) |
|
POS of service related to/use of immovable Property, boat, vessel |
Section-12(3) |
|
POS in case of immovable Property, boat, vessel located outside India |
Proviso to Section 12(3) |
|
POS in case of Immovable Property, boat, vessel is located in more than one state/UT |
Exp to Section-12(3) |
|
In the absence of contract or agreement, manner of determination of POS |
Rule 4 |
|
POS of Restaurant and catering service, personal grooming, fitness, beauty and health services |
Section 12(4) |
|
POS in case of training and performance services |
Section 12(5) |
|
POS in case of services by way of ADMISSION to events/amusement park/other places |
Section 12(6) |
|
Scope of ancillary service in relation to admission |
NA |
|
POS in case of organization of events |
Section 12(7) |
|
POS in case of event is held in more than one state/UT and consolidated amount is charged for event |
Explanation to Section 12(7) |
|
In the absence of contract or agreement, manner of determination of POS |
Rule 5 |
|
POS of service by way of transportation of goods including mail or courier |
Section 12(8) |
|
Clarification on supply of satellite launch services |
C No. 02/01/2017 – IGST |
|
POS in case transportation of goods outside India |
Proviso to Section 12(8) |
|
Clarification on the entitlement of ITC where POS is determined in terms of the proviso to section 12(8) of the IGST Act, 2017 |
C No. 184/16/2022 – CGST |
|
POS of Passenger transportation service |
Section 12(9) |
|
POS in case of right to passage |
Proviso to Section 12(9) |
|
Return journey shall be treated as separate journey |
Explanation to Section 12(9) |
|
Do all stopovers cause a break in continuous journey? |
FAQs on Transport and logistics |
|
How GST is to be charged on a multi-leg international journey? |
FAQs on Transport and logistics |
|
POS of service supplied on board a conveyance |
Section 12(10) |
|
POS of telecommunication services |
Section 12(11) |
|
POS in case address of recipient is not available on record of supplier |
1st Proviso to Section 12(11) |
|
POS if payment is made through internet banking, other electronic mode for pre-paid services |
2nd Proviso to Section 12(11) |
|
Example |
NA |
|
Leased circuit is installed in more than one state/ UT |
Explanation to Section 12(11) |
|
In the absence of contract or agreement, manner of determination of POS |
Rule 6 |
|
POS for Banking, financial or stock broking services |
Section 12(12) |
|
POS for Insurance services |
Section 12(13) |
|
POS for Advertisement service to the Government |
Section 12(14) |
|
Manner of determining proportionate value of service in the absence of a contract or agreement |
Rule 3 |
|
Advertisements in newspapers and publications |
Rule 3(a) |
|
Advertisements through printed material like pamphlets, leaflets, diaries, calendars, T-shirts, etc. |
Rule 3(b) |
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Advertisements in hoardings (other than those on trains) |
Rule 3(c)(i) |
|
Advertisements on trains |
Rule 3(c)(ii) |
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Advertisements on the back of utility bills of oil and gas companies, etc. |
Rule 3(d)(i) |
|
Advertisements on railway tickets |
Rule 3(d)(ii) |
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Advertisements on radio stations |
Rule 3(e) |
|
Advertisement on television channels |
Rule 3(f) |
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Advertisements in cinema halls |
Rule 3(g) |
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Advertisements on internet It is deemed that such service is provided all over India |
Rule 3(h) |
|
Advertisements through SMS |
Rule 3(i) |
|
Clarification regarding determination of place of supply in certain cases |
C No. 103/22/2019-GST |
12.0 Purpose of Section 12
|
Section 12 contains the provisions for determining the place of supply of services where both the ‘location of supplier of services’ and the ‘location of recipient of services’ are in India. |
12.1 Conditions for applicability of Section 12 to determine POS
|
Section 12(1) This section shall apply to determine the place of supply (POS) of services where the location of supplier of services and the location of the recipient of services is in India |
|
Analysis of section 12(1) The provisions of Section 12 are applicable when both the supplier of services and the recipient of services are located within India. If either of the two persons (supplier or recipient) is outside India, the place of supply is determined by section 13. |
Ex |
A consulting firm located in Mumbai, Maharashtra, provides advisory services to a company located in Bangalore, Karnataka. Because both the consulting firm (supplier) and the company (recipient) are located within India, Section 12 will be used to determine the place of supply. |
|
Refer Section 2(70) for meaning of location of the recipient of services |
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Refer Section 2(71) for meaning of location of the supplier of services |
12.2 General provision to determine place of supply of services
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Section 12(2) Place of supply of service, 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 recipient, where the address on record exists; and (ii) the location of supplier, in other cases. |
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Analysis of section 12(2) This subsection provides the general rules for determining the place of supply of services, except for those services specifically covered in subsections (3) to (14) of Section 12. It states: (a) If the service is supplied to a registered person, POS is the location of that registered person. (b) If the service is supplied to a person who is not registered: (i) If the supplier has the recipients address on record, then the place of supply is the location of that recipient. (ii) If the supplier does not have the recipients address on record, then the place of supply is the location of the supplier. |
Ex |
Service provided to registered person A software company in Mumbai (Maharashtra) provides IT services to a registered business in Bangalore (Karnataka). Since the recipient is registered, the place of supply is Bangalore (Karnataka). |
Ex |
Service provided to unregistered person Mr. A, a Chartered Accountant in Gurugram, Haryana, (registered in Haryana) provides consultancy services to his client Mr. C who is a resident of New Delhi but is not registered under GST. If the address of Mr. C is available in the records of Mr. A, location of Mr. C, i.e. New Delhi will be the place of supply, else the location of Mr. A, which is Gurugram, will be the place of supply. |
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12.3 POS of service related to/use of immovable Property, boat, vessel
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Section 12(3) (a) Services directly in relation to an immovable property, including (i) services provided by architects, interior decorators, surveyors, engineers and other related experts or estate agents, (ii) any service provided by way of grant of rights to use immovable property or for carrying out or co-ordination of construction work; or
(b) Services by way of lodging accommodation by a hotel, inn, guest house, home stay, club or campsite, by whatever name called, and including a house boat or any other vessel; or
(c) Services by way of accommodation in any immovable property for organising 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; or
(d) any services ancillary to the services referred to in clauses (a), (b) and (c),
POS in all above cases = location of property, boat, vessel POS shall be the location at which the immovable property or boat or vessel is located or intended to be located: |
|
The fundamental rule of Section 12(3) is that when a service is directly related to immovable property, the "place of supply" is where that property is located. |
Ex |
Construction of building KTS Builders (Mumbai) is constructing a factory building for PLM Pvt. Ltd. (Kolkata), in New Delhi. The place of supply is the location of the immovable property, i.e. New Delhi. |
Ex |
Architect services Shah and Shah, an architectural firm at Kolkata, has been hired by MKF Builders of Mumbai to draw up a plan for a high rise building to be constructed by them in Ahmedabad, Gujarat. The place of supply is the place where the immovable property is intended to be located, i.e. Ahmedabad. |
Ex |
Hotel Accomodation Mr. Ramesh, a Chartered Accountant, (New Delhi) travels to Mumbai for business and stays in a hotel there. The place of supply of accommodation service is the place where the hotel is located, i.e. Mumbai. |
|
12.3.1 POS in case of immovable Property, boat, vessel located outside India
|
Proviso to Section 12(3) if immovable property or boat or vessel is located or intended to be located outside India, the place of supply shall be the location of the recipient. |
Ex |
Mr. X, a consulting engineer based in Mumbai, Maharashtra renders professional services in respect of an immovable property of Mr. Y (Bangalore) located in Australia. Since the immovable property is located outside India, the place of supply of service is the location of recipient, i.e. Bangalore and not the place where the immovable property is located (Australia) |
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12.3.2 POS in case of Immovable Property, boat, vessel is located in more than one state/UT
|
Explanation to Section 12(3) Where the immovable property or boat or vessel is located in more than one State/UT, the supply of services shall be treated as made in each of the respective States/UT: (i) in proportion to the value for services separately collected or determined as terms of contract or agreement entered into in this regard or, (ii) in the absence of such contract or agreement - on such other basis as may be prescribed |
12.3.2.1 In the absence of contract or agreement, manner of determination of POS
|
Rule 4 In the absence of any contract or agreement between the supplier and recipient the value of services attributable to different States/UTs shall be determined in the following manner namely:- |
Type of Supply of services |
Supply of services shall be treated as made in each of the respective States/UTs |
Illustration |
(i) services provided by way of lodging accommodation by a hotel, inn, guest house, club or campsite, by whatever name called and services ancillary to such services (except cases where such property is a single property located in two or more contiguous States/UTs or both) |
in proportion to the number of nights stayed in such property |
1: A hotel chain X charges a consolidated sum of Rs.30,000/- for stay in its two establishments in Delhi and Agra, Stay in Delhi is for 2 nights Stay in Agra is for 1 night. POS in this case is both in Delhi and in Uttar Pradesh and service shall be deemed to have been provided in Delhi and in Uttar Pradesh in the ratio 2:1 respectively. The value of services will thus be apportioned as Rs.20,000/- for Delhi and Rs.10,000/- for Uttar Pradesh. |
(ii) in case of all other services in relation to immovable property including (a) services by way of accommodation in any immovable property for organising any marriage or reception etc., and (b) in cases of supply of accommodation by a hotel, inn, guest house, club or campsite, by whatever name called where such property is a single property located in two or more contiguous States/UTs or both, and services ancillary to such services, |
in proportion to the area of the immovable property lying in each State or UT; |
2: There is a piece of land of area 20,000 square feet which is partly in State S1 say 12,000 sqf and State S2, say 8000 sqf. Site preparation work has been entrusted to T. The ratio of land in the two states works out to 12:8 or 3:2 (simplified). The place of supply is in both S1 and S2. The service shall be deemed to have been provided in the ratio of 12:8 or 3:2 (simplified) in the States S1 and S2 respectively. The value of the service shall be accordingly apportioned between the States. |
(iii) in case of services provided by way of lodging accommodation by a house boat or any other vessel and services ancillary to such services, |
in proportion to the time spent by the boat or vessel in each such State or UT, which shall be determined on the basis of a declaration made to the effect by the service provider. |
3: A company C provides the service of 24 hours accommodation in a houseboat, which is situated both in Kerala and Karnataka inasmuch as the guests board the house boat in Kerala and stay there for 22 hours but it also moves into Karnataka for 2 hours (as declared by the service provider). POS of this service is in the States of Kerala and Karnataka. The service shall be deemed to have been provided in the ratio of 22:2 or 11:1 in the states of Kerala and Karnataka, respectively. The value of the service shall be accordingly apportioned between the States. |
12.4 POS of Restaurant and catering service, personal grooming, fitness, beauty and health services
|
Section 12(4) The place of supply of restaurant and catering services, personal grooming, fitness, beauty treatment, health service cosmetic and plastic surgery shall be the location where the services are actually performed |
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Section 12(4) prioritizes the physical location of service delivery as the determining factor for the place of supply. |
Ex |
Mr. A, a businessman from Pune dines in a restaurant at Mumbai while on a business trip. POS of restaurant service is the location where such service is performed, i.e. Mumbai. |
Ex |
Mr. Timmy Ferreira, a makeup artist at Kolkata, goes to Jaipur, Rajasthan for doing the makeup of Ms. Simran Kapoor, a Bollywood actress based in Mumbai. The place of supply is the location where such service is performed, i.e. Jaipur. |
12.5 POS in case of training and performance services
|
Section 12(5) The place of supply of services in relation to training and performance appraisal to,–– (a) a registered person, shall be the location of such person; (b) a person other than a registered person, shall be the location where the services are actually performed. |
Ex |
Service to Registered Person DEO Consultants (Kolkata) impart GST training to accounts and finance personnel of Sun Cements Ltd., Guwahati, Assam (registered office) at the company’s Kolkata office which is also registered under GST. Since the contract is entered with Guwahati office, and it being a registered recipient, the place of supply is the location of the registered person, i.e. Guwahati. |
Ex |
Service to Unregistered Person Mr. Suresh (unregistered person based in Noida) signs up with Excellent Linguistics (New Delhi) for training on English speaking at their New Delhi Centre. Since the recipient is unregistered, the place of supply is the location where services are provided, i.e. New Delhi. |
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12.6 POS in case of services by way of ADMISSION to events/amusement park/other places
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Section 12(6) where services provided by way of admission to a cultural, artistic, sporting, scientific, educational, entertainment event or amusement park or any other place and services ancillary thereto,
POS of above services shall be the place where the event is actually held or the park or such other place is located. |
Ex |
Mr. A, a resident of Ghaziabad, Uttar Pradesh, buys a ticket for a circus organized at Gurugram, Haryana by a circus company based in New Delhi. POS is the location where the circus is held, i.e. Gurugram. |
Ex |
Mr. B of New Delhi buys a ticket for an amusement park located in Noida, Uttar Pradesh. POS is the location where the park is located, i.e. Noida. |
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12.6.1 Scope of ancillary service in relation to admission
|
A service of security agency used for regulating the entry for entry in music show for an event is a service that is ancillary to admission to the event. |
12.7 POS in case of organization of events
|
Section 12(7) Services provided by way of, (a) organisation of a cultural, artistic, sporting, scientific, educational or entertainment event services in relation to a conference, fair, exhibition, celebration or similar events; or (b) services ancillary to organisation of any of the events or services referred to in clause (a), or assigning of sponsorship to such events,–
POS of above services provided, (i) to a registered person, shall be the location of such person; (ii) to a person other than a registered person, shall be the place where the event is actually held
If the event is held outside India, POS shall be the location of the recipient. |
Ex |
Service provided to RP Mega Events, an event management company at New Delhi, organizes an award function for Shah Diamond Merchants of Ahmedabad (registered in Gujarat), at Mumbai. Since the recipient is a registered person, the place of supply is the location of the recipient, i.e. Ahmedabad. |
Ex |
Mega Events, an event management company at New Delhi, organizes an award function for Shah Diamond Merchants of Ahmedabad (registered in Gujarat), in Mauritius. Since the recipient is a registered person, the place of supply is the location of the recipient, i.e. Ahmedabad. |
Ex |
Service provided to URP in India Grand Wedding Planners (Chennai) is hired by Mr. Ramesh (unregistered person based in Hyderabad) to plan and organise his wedding at New Delhi. The recipient being an unregistered person, the place of supply is the location where the event is held, i.e. New Delhi. |
Ex |
Service provided to URP outside India Grand Wedding Planners (Chennai) is hired by Mr. Ramesh (unregistered person based in Hyderabad) to plan and organize his wedding in Seychelles. The recipient being an unregistered person and the event held outside India, the place of supply is the location of the recipient, i.e. Hyderabad and not the location where the event is held, i.e. Seychelles. |
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12.7.1 POS in case of event is held in more than one state/UT and consolidated amount is charged for event
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Explanation to Section 12(7) Where the event is held in more than one State/UT and a consolidated amount is charged for such event, Value of supply of services shall be taken as being in each of the respective States/UT: (i) in proportion to the value for services separately collected or determined as per contract or agreement entered into this regard or, (ii) In the absence of contract or agreement - on such other basis as may be prescribed |
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The above provision is applicable only when the recipient is unregistered, as for a registered recipient, the place of supply is the location of such recipient. |
12.7.1.1 In the absence of contract or agreement, manner of determination of POS
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Rule 5 where the event or services referred in section 12(7), are supplied to a person other than a registered person and the event is held in India in more than one State or UT and a consolidated amount is charged for supply of such services and in the absence of any contract or agreement between the supplier and recipient for separately collecting or determining the value of the services in each such State/UT, supply of services attributable to different States or Union territories shall be determined by application of the generally accepted accounting principles. |
Ill |
An event management company E has to organise some promotional events in States S1 and S2 for a recipient R. 3 events are to be organised in S1 and 2 in S2. They charge a consolidated amount of Rs.10,00,000 from R. The place of supply of this service is in both the States S1 and S2. Say the proportion arrived at by the application of generally accepted accounting principles is 3:2. The service shall be deemed to have been provided in the ratio 3:2 in S1 and S2 respectively. The value of services provided will thus be apportioned as Rs. 6,00,000/- in S1 and Rs. 4,00,000/- in S2 . |
12.8 POS of service by way of transportation of goods including mail or courier
|
Section 12(8) POS of services by way of 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, shall be the location at which such goods are handed over for their transportation. |
Ex |
Services to RP M/s XYZ Pvt. Ltd. is a registered company in New Delhi. It sends its courier to Pune through M/s Brue Air Courier Service. The recipient being registered person, the place of supply is the location of recipient, i.e. New Delhi. |
Ex |
Services to URP Mr. Y, an unregistered person, of New Delhi sends a courier to his brother in Amritsar, Punjab. The recipient being unregistered person, the place of supply is the location where goods are handed over for their transportation, i.e. New Delhi. |
Ex |
Transportation of goods outside India M/s JKL Pvt. Ltd. is a registered company in Chennai. It ships goods to its customer in London, United Kingdom through M/s Strong Logistics, a shipping company. The place of supply of services of transportation of goods provided by M/s Strong Logistics to M/s JKL Pvt. Ltd. is the location of the recipient, i.e. Chennai |
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12.8.1 Clarification on supply of satellite launch services
|
Circular No. 02/01/2017 – IGST dated 27-09-2017 |
Issue |
Request has been received regarding taxability of satellite launch services provided to both international and domestic customers by ANTRIX Corporation Limited which is a wholly owned Government of India Company under the administrative control of Department of Space (DOS). |
Clarification |
In view of the provision of section 2(6)-Export of services, section 13(9) and section, where satellite launch services supplied by ANTRIX Corporation Limited to international customers, POS would be outside India in terms of section” 13(9) of IGST Act, 2017 and such supply which meets the requirements of section 2(6) of IGST Act, thus constitute export of service and shall be zero rated in accordance with section 16 of the IGST Act. to a person located in India, POS of satellite launch service would be governed by section 12(8) of the IGST Act and would be taxable under CGST Act, UTGST Act or IGST Act, as the case may be. |
12.8.2 POS in case transportation of goods outside India
|
where the transportation of goods is to a place outside India, the place of supply shall be the place of destination of such goods. |
12.8.2.1 Clarification on the entitlement of ITC where POS is determined in terms of the proviso to section 12(8) of the IGST Act, 2017
|
Refer Circular No. 184/16/2022 – CGST dated 27-12-2022 |
12.9 POS of Passenger transportation service
|
Section 12(9) The place of supply of passenger transportation service to, (a) a registered person, shall be the location of such person; (b) a person other than a registered person, shall be the place where the passenger embarks on the conveyance for a continuous journey: |
Ex |
Services to RP Mr. Amar (registered person in New Delhi) travels from Mumbai to Bangalore in Airjet flight. Mr. Amar has bought the tickets for the journey from Airjet’s office registered in New Delhi. The place of supply is the location of recipient, i.e. New Delhi. |
|
Refer section 2(34) for meaning of ‘Conveyance’ of CGST Act Refer section 2(3) for meaning of ‘Continuous journey’ of IGST Act |
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12.9.1 POS in case of right to passage
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Proviso to Section 12(9) where the right to passage is given for future use and the point of embarkation is not known at the time of issue of right to passage, POS of such service shall be determined in accordance with sub-section (2). |
Ex |
An airline may issue seasonal tickets, containing say 10 voucher which could be used for travel between any two locations in the country. The card issued by New Delhi metro could be used by a person located in Noida, or New Delhi or Faridabad, without the New Delhi metro being able to distinguish the location or journeys at the time of receipt of payment. |
12.9.2 Return journey shall be treated as separate journey
|
Explanation to Section 12(9) For the purposes of this sub-section, the return journey shall be treated as a separate journey, even if the right to passage for onward and return journey is issued at the same time. |
Ex |
Services to URP Mr. Shyam, an unregistered person, based in Gurugram, Haryana books a two-way air journey ticket from New Delhi to Mumbai on 5th Dec. He leaves New Delhi on 10th Dec in a late-night flight and lands in Mumbai the next day. He leaves Mumbai on 14th Dec in a morning flight and lands in New Delhi the same day.
The return journey is treated as a separate journey, even if the tickets for onward and return journey are issued at the same time. Thus, being an unregistered person, the place of supply for the outward and return journeys are the locations where the unregistered person embarks on the conveyance for the continuous journey, i.e. New Delhi and Mumbai respectively |
12.9.3 Do all stopovers cause a break in continuous journey?
FAQs |
12 no. FAQs on Transport and logistics |
Q |
In terms of section 12(9) of the IGST Act, 2017 the place of supply of passenger transportation service to a person other than a registered person, shall be the place where the passenger embarks on the conveyance for a continuous journey. In section 2(3) of the IGST Act, 2017, the term “continuous journey” has been defined to mean a journey for which a single or more than one ticket or invoice is issued at the same time, either by a single supplier of service or through an agent acting on behalf of more than one supplier of service, and which involves no stopover between any of the legs of the journey for which one or more separate tickets or invoices are issued. Do all stopovers cause a break in continuous journey? Does the definition of “continuous journey” include instances whereby the stopover is for any period of time? |
A |
The term “stopover” has been explained in section 2(3) of the IGST Act, 2017 to mean a place where a passenger can disembark either to transfer to another conveyance or break his journey for a certain period in order to resume it at a later point of time. However, all stopovers do not cause a break in continuous journey. Thus a travel on Delhi-London-New York on a single ticket with a halt at London will be covered by the definition of continuous journey. However, the return journey of New York-London-Delhi will be treated as a separate journey and will be outside the scope of a continuous journey. |
12.9.4 How GST is to be charged on a multi-leg international journey?
|
13 no. FAQs on Transport and logistics |
Q |
How GST is to be charged on a multi-leg international journey, say Delhi-Dubai-Boston-Dubai-Delhi? Is GST chargeable for the entire journey and discharged at Delhi, or the GST is to be charged for Delhi-Dubai sector alone and discharged at Delhi, or GST is to be charged up to the farthest point of return, i.e. Delhi-Dubai-Boston at Delhi? |
A |
In this case if a single ticket or invoice has been issued for the Delhi-Dubai-Boston then it is a continuous journey even if there is a stopover at Dubai and the tax (CGST + SGST) would be charged at Delhi. The return journey of Boston-Dubai-Delhi would not be a continuous journey. The return journey not being a continuous journey and its place of supply being outside India, the said journey, would be liable to tax if the location of the supplier is in India. |
12.10 POS for service supplied on board a conveyance
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Section 12(10) The place of supply of services on board a conveyance, including a vessel, an aircraft, a train or a motor vehicle, shall be the location of the first scheduled point of departure of that conveyance for the journey. |
Ex |
Mr. X is travelling from Delhi to Mumbai in an Airjet flight. He desires to watch an English movie during the journey by making the necessary payment. The place of supply of such service of showing ‘movie on demand’ is the first scheduled point of departure of the conveyance for the journey, i.e. Delhi. |
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12.11 POS of telecommunication services
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Refer section 2(110) for meaning of telecommunication services |
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Section 12(11) The place of supply of telecommunication services including data transfer, broadcasting, cable and direct to home television services to any person shall be as follows, |
Cl |
Type of Services |
POS shall be |
(a) |
fixed telecommunication line, leased circuits, internet leased circuit, cable or dish antenna |
location where said service is installed for receipt of services |
(b) |
mobile connection for telecommunication and internet services provided on post-paid basis |
location of billing address of the recipient on the record of the supplier |
(c) |
where mobile connection for telecommunication, internet service and direct to home television services are provided on 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 (SIM) card or re-charge voucher, or |
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, |
location where such prepayment is received or such vouchers are sold; |
(d) |
in other cases, |
address of the recipient as per the records of the supplier and where such address is not available, POS shall be location of the supplier: |
|
12.11.1 POS in case address of recipient is not available on record of supplier
|
1st Proviso to Section 12(11) where the address of the recipient as per the records of the supplier is not available, POS shall be location of the supplier: |
12.11.2 POS if payment is made through internet banking, other electronic mode for pre-paid services
|
2nd Proviso to Section 12(11) If such pre-paid service is availed or the recharge is made through internet banking or other electronic mode of payment, POS shall be location of the recipient on the record of the supplier |
12.11.3 Example
Ex |
Fixed landline Mr. X (Kolkata) gets a landline phone installed at his home from Skybel Ltd. The place of supply is the location where the telecommunication line is installed, i.e. Kolkata. |
Ex |
DTH Mr. Y (Mumbai) gets a DTH installed at his home from RT Ltd. The place of supply is the location where the DTH is installed, i.e. Mumbai |
Ex |
Post-paid mobile connection Mr. D (Mumbai) takes a post-paid mobile connection in Mumbai from Skybel Ltd and gives his residence address at Mumbai as the address for billing with supplier. The place of supply is the location of billing address of the recipient, i.e. Mumbai. |
Ex |
Mr. E (New Delhi) gets his post-paid mobile bill (billing address New Delhi) paid online from Goa. The place of supply is the location of the billing address of the recipient, i.e. New Delhi. |
Ex |
Prepaid card from selling agent Mr. C (Pune) purchases a pre-paid card from a selling agent in Mumbai. The place of supply is the address of the selling agent or re-seller, i.e. Mumbai. |
Ex |
Prepaid card from other person Mr. F (Puducherry) gets a pre-paid mobile recharged from a grocery shop in Chennai. The place of supply is the location where such pre-payment is received, i.e. Chennai. |
12.11.4 Leased circuit is installed in more than one state/ UT
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Explanation to Section 12(11) Where the leased circuit is installed in more than one State/UT and a consolidated amount is charged for supply of services relating to such circuit, the place of supply of such services shall be taken as being in each of the respective States/UTs in proportion to the value for services separately collected or determined in terms of the contract or agreement entered into in this regard or, in the absence of such contract or agreement, on such other basis as may be prescribed. |
12.11.4.1 In the absence of contract or agreement, manner of determination of POS
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Rule 6 Where the leased circuit is installed in more than one State/UT and a consolidated amount is charged for supply of such services, and in the absence of any contract or agreement between the supplier and recipient for separately collecting or determining the value of the services in each such State/UT Value of supply of services shall be determined for each state/UT in the following manner, namely:- (a) The number of points in a circuit shall be determined in the following manner: (i) in the case of a circuit between two points or places, the starting point or place of the circuit and the end point or place of the circuit will invariably constitute two points; (ii) any intermediate point or place in the circuit will also constitute a point provided that the benefit of the leased circuit is also available at that intermediate point; (b) the supply of services shall be treated as made in each of the respective States/UTs, in proportion to the number of points lying in the State/UT. |
Ill-1 |
Starting and end points of circuit A company T installs a leased circuit between the Delhi and Mumbai offices of a company C. The starting point of this circuit is in Delhi and the end point of the circuit is in Mumbai. Hence one point of this circuit is in Delhi and another in Maharashtra. The place of supply of this service is in the Union territory of Delhi and the State of Maharashtra. The service shall be deemed to have been provided in the ratio of 1:1 in the Union territory of Delhi and the State of Maharashtra, respectively. |
Ill-2 |
Starting, end points and intermediate point of circuit A company T installs a leased circuit between the Chennai, Bengaluru and Mysuru offices of a company C. The starting point of this circuit is in Chennai and the end point of the circuit is in Mysuru. The circuit also connects Bengaluru. Hence one point of this circuit is in Tamil Nadu and two points in Karnataka. The place of supply of this service is in the States of Tamil Nadu and Karnataka. The service shall be deemed to have been provided in the ratio of 1:2 in the States of Tamil Nadu and Karnataka, respectively. |
Ill-3 |
A company T installs a leased circuit between the Kolkata, Patna and Guwahati offices of a company C. There are 3 points in this circuit in Kolkata, Patna and Guwahati. One point each of this circuit is, therefore, in West Bengal, Bihar and Assam. The place of supply of this service is in the States of West Bengal, Bihar and Assam. The service shall be deemed to have been provided in the ratio of 1:1:1 in the States of West Bengal, Bihar and Assam, respectively. |
12.12 POS for Banking, financial or stock broking services
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Section 12(12) In case of banking and other financial services, including stock broking services to any person POS shall be the location of the recipient on the records of the supplier: |
Ex |
Mr. A (Chennai) buys shares from a broker in BSE (Mumbai). The place of supply is the location of the recipient of services in the records of the supplier, i.e. Chennai. |
Ex |
Mr. B (New Delhi) withdraws money from Best Bank’s ATM in Amritsar. Mr. B has crossed his limit of free ATM withdrawals. The place of supply is the location of the recipient of services in the records of the supplier, i.e. New Delhi. |
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12.12.1 POS if location of recipient is not available on records of supplier
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Proviso to Section 12(12) If the location of recipient is not on the records of the supplier, POS shall be the location of the supplier |
Ex |
Mr. C from Varanasi, Uttar Pradesh, visits a bank registered in New Delhi for getting a demand draft made. Mr. C does not have any account with the said bank. Therefore, since the location of recipient is not available in the records of the supplier, the place of supply is the location of the supplier of services, i.e. New Delhi. |
12.13 POS for Insurance services
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Section 12(13) The place of supply of insurance services shall,– (a) to a registered person, be the location of such person; (b) to a person other than a registered person, be the location of the recipient on the records of the supplier. |
Ex |
Service to RP Mr. A, CEO of XY Ltd., Mumbai (a company registered in Maharashtra) buys insurance cover for the inventory stored in company’s factory located at Mumbai, from Excellent Insurers, Chennai (registered in Tamil Nadu). The place of supply is the location of the registered recipient, i.e. Mumbai |
Ex |
Services to URP Ms. B (unregistered resident of Kolkata) goes to her native place Patna, Bihar and buys a medical insurance policy for her parents there from Safe Insurers, Patna (registered in Bihar). The place of supply is the location of the recipient of services in the records of the supplier, i.e. Patna |
12.14 POS for Advertisement service to the Government
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Section 12(14) In case of advertisement services to the Central Government, a State Government, a statutory body or a local authority meant for the States/UTs identified in the contract or agreement POS shall be taken as being in each of such States/UTs and the value of such supplies specific to each State/UT shall be in proportion to the amount attributable to services provided by way of dissemination in the respective States/UTs as may be determined in terms of the contract or agreement entered into in this regard or, in the absence of such contract or agreement, on such other basis as may be prescribed. |
12.14.1 Manner of determining proportionate value of service in the absence of a contract or agreement
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Rule 3 In case of advertisement services to the Central Government, a State Government, a statutory body or a local authority u/s 12(14) of IGST Act and in the absence of any contract between the supplier and recipient, the proportion of value attributable to different States/UTs, shall be determined in the following manner namely: |
12.14.1.1 Advertisements in newspapers and publications
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Rule 3(a) In the case of newspapers and publications, the amount payable for publishing an advertisement in all the editions of a newspaper or publication, which are published in a State/UT, is the value of advertisement service attributable to the dissemination in such State or Union territory. |
Ill |
ABC is a government agency which deals with the all the advertisement and publicity of the Government. It has various wings dealing with various types of publicity. In furtherance thereof, it issues release orders to various agencies and entities. These agencies and entities thereafter provide the service and then issue invoices to ABC indicating the amount to be paid by them. ABC issues a release order to a newspaper for an advertisement on ‘Beti bachao beti padhao’, to be published in the newspaper DEF (whose head office is in Delhi) for the editions of Delhi, Pune, Mumbai, Lucknow and Jaipur. The release order will have details of the newspaper like the periodicity, language, size of the advertisement and the amount to be paid to such a newspaper. POS of this service shall be Delhi, and Maharashtra, Uttar Pradesh and Rajasthan. The amounts payable to the Pune and Mumbai editions would constitute the proportion of value for the state of Maharashtra which is attributable to the dissemination in Maharashtra. Likewise the amount payable to the Delhi, Lucknow and Jaipur editions would constitute the proportion of value attributable to the dissemination in Delhi and Uttar Pradesh and Rajasthan respectively. DEF should issue separate State wise and Union territory wise invoices based on the editions. |
12.14.1.2 Advertisements through printed material like pamphlets, leaflets, diaries, calendars, T-shirts, etc.
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Rule 3(b) in the case of printed material like pamphlets, leaflets, diaries, calendars, T shirts etc, the amount payable for the distribution of a specific number of such material in a particular State/UT is the value of advertisement service attributable to the dissemination in such State/UT |
Ill |
As a part of the campaign ‘Swachh Bharat’, ABC has engaged a company GH for printing of one lakh pamphlets (at a total cost of one lakh rupees) to be distributed in the states of Haryana, Uttar Pradesh and Rajasthan. In such a case, ABC should ascertain the breakup of the pamphlets to be distributed in each of the 3 States from the Ministry or department concerned at the time of giving the print order. Let us assume that this breakup is 20,000, 50,000 and 30,000 respectively. This breakup should be indicated in the print order. POS of this service is in Haryana , Uttar Pradesh and Rajasthan. The ratio of this breakup i.e 2:5:3 will form the basis of value attributable to the dissemination in each of the three States. Separate invoices will have to be issued State wise by GH to ABC indicating the value pertaining to that State i.e Rs.20,000 - Haryana, Rs.50,000 - Uttar Pradesh and Rs.30,000 – Rajasthan |
12.14.1.3 Advertisements in hoardings (other than those on trains)
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Rule 3(c)(i) in the case of hoardings other than those on trains, the amount payable for the hoardings located in each State/UT, is the value of advertisement service attributable to the dissemination in each such State/UT. |
Ill |
ABC as part of the campaign ‘Saakshar Bharat’ has engaged a firm IJ for putting up hoardings near the Airports in the four metros i.e. Delhi, Mumbai, Chennai and Kolkata. The release order issued by ABC to IJ will have the city wise, location wise breakup of the amount payable for such hoardings. The place of supply of this service is in Delhi and Maharashtra, Tamil Nadu and West Bengal. In such a case, the amount actually paid to IJ for the hoardings in each of the four metros will constitute the value attributable to the dissemination in Delhi, Maharashtra, Tamil Nadu and West Bengal respectively. Separate invoices will have to be issued State/UT wise by IJ to ABC indicating the value pertaining to that State/UT |
12.14.1.4 Advertisements on trains
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Rule 3(c)(ii) in the case of advertisements placed on trains, the breakup, calculated on the basis of the ratio of the length of the railway track in each State for that train, of the amount payable for such advertisements is the value of advertisement service attributable to the dissemination in such State/UT. |
Ill |
ABC places an order on KL for advertisements to be placed on a train with regard to the “Janani Suraksha Yojana”. The length of a track in a state will vary from train to train. Thus for advertisements to be placed on the Hazrat Nizamuddin Vasco Da Gama Goa Express which runs through Delhi, Haryana, Uttar Pradesh, Madhya Pradesh, Maharashtra, Karnataka and Goa, KL may ascertain the total length of the track from Hazrat Nizamuddin to Vasco Da Gama as well as the length of the track in each of these States/UTs from the website www.indianrail.gov.in. The place of supply of this service is in Delhi, Haryana, Uttar Pradesh, Madhya Pradesh, Maharashtra, Karnataka and Goa. The value of the supply in each of these States/UTs attributable to the dissemination in these States will be in the ratio of the length of the track in each of these States/UTs. If this ratio works out to say 0.5:0.5: 2:2 :3:3:1 , and the amount to be paid to KL is Rs.1,20,000, then KL will have to calculate the State/UT wise breakup of the value of the service, which will be in the ratio of the length of the track in each State/UT. In the given example the State/UT wise breakup works out to Delhi (Rs.5,000), Haryana (Rs.5,000), Uttar Pradesh (Rs.20,000), Madhya Pradesh (Rs.20,000), Maharashtra (Rs.30,000), Karnataka (Rs.30,000) and Goa (Rs.10,000). Separate invoices will have to be issued State wise and Union territory wise by KL to ABC indicating the value pertaining to that State or Union territory. |
12.14.1.5 Advertisements on the back of utility bills of oil and gas companies, etc.
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Rule 3(d)(i) in the case of advertisements on the back of utility bills of oil and gas companies etc, the amount payable for the advertisements on bills pertaining to consumers having billing addresses in such States/UTs, is the value of advertisement service attributable to dissemination in such State/UT. |
12.14.1.6 Advertisements on railway tickets
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Rule 3(d)(ii) in the case of advertisements on railway tickets, the breakup, calculated on the basis of the ratio of the number of Railway Stations in each State/UT, when applied to the amount payable for such advertisements, shall constitute the value of advertisement service attributable to the dissemination in such State/UT. |
Ill |
ABC has issued a release order to MN for display of advertisements relating to the “Ujjwala” scheme on the railway tickets that are sold from all the Stations in the States of Madhya Pradesh and Chattisgarh. POS of this service is in Madhya Pradesh and Chattisgarh. The value of advertisement service attributable to these two States will be in the ratio of the number of railway stations in each State as ascertained from the Railways or from the website www.indianrail.gov.in. Let us assume that this ratio is 713:251 and the total bill is Rs.9,640. The breakup of the amount between Madhya Pradesh and Chattisgarh in this ratio of 713:251 works out to Rs.7,130 and Rs.2,510 respectively. Separate invoices will have to be issued State wise by MN to ABC indicating the value pertaining to that State. |
12.14.1.7 Advertisements on radio stations
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Rule 3(e) in the case of advertisements over radio stations the amount payable to such radio station, which by virtue of its name is part of a State/UT, is the value of advertisement service attributable to dissemination in such State/UT. |
Ill |
For an advertisement on ‘Pradhan Mantri Ujjwala Yojana’, to be broadcast on a FM radio station OP, for the radio stations of OP Kolkata, OP Bhubaneswar, OP Patna, OP Ranchi and OP Delhi, the release order issued by ABC will show the breakup of the amount which is to be paid to each of these radio stations. POS of this service is in West Bengal, Odisha, Bihar, Jharkhand and Delhi. The place of supply of OP Delhi is in Delhi even though the studio may be physically located in another state. Separate invoices will have to be issued State wise and Union territory wise by MN to ABC based on the value pertaining to each State or Union territory |
12.14.1.8 Advertisement on television channels
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Rule 3(f) in the case of advertisement on television channels, the amount attributable to the value of advertisement service disseminated in a State shall be calculated on the basis of the viewership of such channel in such State, which in turn, shall be calculated in the following manner, namely: - (i) the channel viewership figures for that channel for a State/UT shall be taken from the figures published in this regard by the Broadcast Audience Research Council; (ii) the figures published for the last week of a given quarter shall be used for calculating viewership for the succeeding quarter and at the beginning, the figures for the quarter 1st July, 2017 to 30th September, 2017 shall be used for the succeeding quarter 1st October, 2017 to 31st December, 2017; (iii) where such channel viewership figures relate to a region comprising of more than one State/UT, the viewership figures for a State/UT of that region, shall be calculated by applying the ratio of the populations of that State/UT, as determined in the latest Census, to such viewership figures; (iv) the ratio of the viewership figures for each State/UT as so calculated, when applied to the amount payable for that service, shall represent the portion of the value attributable to the dissemination in that State/UT. |
Ill |
ABC issues a release order with QR channel for telecasting an advertisement relating to the “Pradhan Mantri Kaushal Vikas Yojana” in the month of November, 2017. In the first phase, this will be telecast in the Union territory of Delhi, States of Uttar Pradesh, Uttarakhand, Bihar and Jharkhand. The place of supply of this service is in Delhi, Uttar Pradesh, Uttarakhand, Bihar and Jharkhand. In order to calculate the value of supply attributable to Delhi , Uttar Pradesh, Uttarakhand, Bihar and Jharkhand, QR has to proceed as under— I. QR will ascertain the viewership figures for their channel in the last week of September 2017 from the Broadcast Audience Research Council. Let us assume it is one lakh for Delhi and two lakhs for the region comprising of Uttar Pradesh and Uttarakhand and one lakh for the region comprising of Bihar and Jharkhand; II. since the Broadcast Audience Research Council clubs Uttar Pradesh and Uttarakhand into one region and Bihar and Jharkhand into another region, QR will ascertain the population figures for Uttar Pradesh , Uttarakhand , Bihar and Jharkhand from the latest census; III. by applying the ratio of the populations of Uttar Pradesh and Uttarakhand, as so ascertained, to the Broadcast Audience Research Council viewership figures for their channel for this region, the viewership figures for Uttar Pradesh and Uttarakhand and consequently the ratio of these viewership figures can be calculated. Let us assume that the ratio of the populations of Uttar Pradesh and Uttarakhand works out to 9: 1. When this ratio is applied to the viewership figures of two lakhs for this region, the viewership figures for Uttar Pradesh and Uttarakhand work out to one lakh eighty thousand and twenty thousand respectively; IV. in a similar manner the breakup of the viewership figures for Bihar and Jharkhand can be calculated. Let us assume that the ratio of populations is 4:1 and when this is applied to the viewership figure of one lakh for this region, the viewership figure for Bihar and Jharkhand works out to eighty thousand and twenty thousand respectively; V. the viewership figure for each State works out to Delhi (one lakh), Uttar Pradesh (one lakh eighty thousand), Uttarakhand (twenty thousand), Bihar (eighty thousand) and Jharkhand (twenty thousand). The ratio is thus 10:18:2:8:2 or 5:9:1:4:1(simplification). VI. this ratio has to be applied when indicating the breakup of the amount pertaining to each State. Thus if the total amount payable to QR by ABC is twenty lakh rupees, the State wise breakup is five lakh rupees(Delhi), nine lakh rupees (Uttar Pradesh) one lakh rupees (Uttarakhand), four lakh rupees (Bihar) and one lakh rupees ( Jharkhand). Separate invoices will have to be issued State wise and Union territory wise by QR to ABC indicating the value pertaining to that Stateor Union territory. |
12.14.1.9 Advertisements in cinema halls
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Rule 3(g) in the case of advertisements at cinema halls the amount payable to a cinema hall or screens in a multiplex, in a State/UT, is the value of advertisement service attributable to dissemination in such State/UT |
Ill |
ABC commissions ST for an advertisement on ‘Pradhan Mantri Awas Yojana’ to be displayed in the cinema halls in Chennai and Hyderabad. POS of this service is in the states of Tamil Nadu and Telengana. The amount actually paid to the cinema hall or screens in a multiplex, in Tamil Nadu and Telangana, is the value of advertisement service in Tamil Nadu and Telangana respectively. Separate invoices will have to be issued State wise and Union territory wise by ST to ABC indicating the value pertaining to that State. |
12.14.1.10 Advertisements on internet It is deemed that such service is provided all over India
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Rule 3(h) in the case of advertisements over internet [2][the service shall be deemed to have been provided all over India and], the amount attributable to the value of advertisement service disseminated in a State/UT shall be calculated on the basis of the internet subscribers in such State/UT, which in turn, shall be calculated in the following manner, namely:- (i) the internet subscriber figures for a State shall be taken from the figures published in this regard by the TRAI ; (ii) the figures published for the last quarter of a given financial year shall be used for calculating the number of internet subscribers for the succeeding financial year and at the beginning, the figures for the last quarter of financial year 2016- 2017 shall be used for the succeeding financial year 2017-2018; (iii) where such internet subscriber figures relate to a region comprising of more than one State/UT, the subscriber figures for a State/UT of that region, shall be calculated by applying the ratio of the populations of that State/UT, as determined in the latest census, to such subscriber figures; (iv) the ratio of the subscriber figures for each State/UT as so calculated, when applied to the amount payable for this service, shall represent the portion of the value attributable to the dissemination in that State/UT. |
Ill |
ABC issues a release order to WX for a campaign over internet regarding linking Aadhaar with one’s bank account and mobile number. WX runs this campaign over certain websites. In order to ascertain the statewise breakup of the value of this service which is to be reflected in the invoice issued by WX to ABC, WX has to first refer to the Telecom Regulatory Authority of India figures for quarter ending March, 2017, as indicated on their website www.trai.gov.in. These figures show the service area wise internet subscribers. There are twenty two service areas. Some relate to individual States some to two or more States and some to part of one State and another complete State. Some of these areas are metropolitan areas. In order to calculate the State wise breakup, first the State wise breakup of the number of internet subscribers is arrived at. (In case figures of internet subscribers of one or more States are clubbed, the subscribers in each State is to be arrived at by applying the ratio of the respective populations of these States as per the latest census.). Once the actual number of subscribers for each State has been determined, the second step for WX involves calculating the State wise ratio of internet subscribers. Let us assume that this works out to 8: 1 : 2… and so on for Andhra Pradesh, Arunachal Pradesh, Assam….. and so on. The third step for WX will be to apply these ratios to the total amount payable to WX so as to arrive at the value attributable to each State. Separate invoices will have to be issued State wise and Union territory wise by WX to ABC indicating the value pertaining to that State or Union territory. |
12.14.1.11 Advertisements through SMS
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Rule 3(i) in the case of advertisements through short messaging service the amount attributable to the value of advertisement service disseminated in a State/UT shall be calculated on the basis of the telecommunication (herein after referred to as telecom) subscribers in such State or Union territory , which in turn, shall be calculated in the following manner, namely:- (a) the number of telecom subscribers in a telecom circle shall be ascertained from the figures published by the Telecom Regulatory Authority of India on its website www.trai.gov.in ; (b) the figures published for a given quarter, shall be used for calculating subscribers for the succeeding quarter and at the beginning , the figures for the quarter 1st July, 2017 to 30th September, 2017 shall be used for the succeeding quarter 1st October, 2017 to 31st December, 2017; (c) where such figures relate to a telecom circle comprising of more than one State, or Union territory, the subscriber figures for that State or Union territory shall be calculated by applying the ratio of the populations of that State or Union territory, as determined in the latest census, to such subscriber figures. (d) the ratio of the subscriber figures for each State/UT as so calculated, when applied to the amount payable for that service, shall represent the portion of the value attributable to the dissemination in that State/UT.] |
Ill |
1. In the case of the telecom circle of Assam, the amount attributed to the telecom circle of Assam is the value of advertisement service in Assam. 2. The telecom circle of North East covers the States of Arunachal Pradesh, Meghalaya, Mizoram, Nagaland, Manipur and Tripura. The ratio of populations of each of these States in the latest census will have to be determined and this ratio applied to the total number of subscribers for this telecom circle so as to arrive at the State wise figures of telecom subscribers. Separate invoices will have to be issued State wise by the service provider to ABC indicating the value pertaining to that State. 3. ABC commissions UV to send short messaging service to voters asking them to exercise their franchise in elections to be held in Maharashtra and Goa. The place of supply of this service is in Maharashtra and Goa. The telecom circle of Maharashtra consists of the area of the State of Maharashtra (excluding the areas covered by Mumbai which forms another circle) and the State of Goa. When calculating the number of subscribers pertaining to Maharashtra and Goa, UV has to – I. obtain the subscriber figures for Maharashtra circle and Mumbai circle and add them to obtain a combined figure of subscribers; II. obtain the figures of the population of Maharashtra and Goa from the latest census and derive the ratio of these two populations; III. this ratio will then have to be applied to the combined figure of subscribers so as to arrive at the separate figures of subscribers pertaining to Maharashtra and Goa; IV the ratio of these subscribers when applied to the amount payable for the short messaging service in Maharashtra circle and Mumbai circle, will give breakup of the amount pertaining to Maharashtra and Goa. Separate invoices will have to be issued State wise by UV to ABC indicating the value pertaining to that State. 4. The telecom circle of Andhra Pradesh consists of the areas of the States of Andhra Pradesh, Telangana and Yanam, an area of the Union territory of Puducherry. The subscribers attributable to Telangana and Yanam will have to be excluded when calculating the subscribers pertaining to Andhra Pradesh |
12.15 Clarification regarding determination of place of supply in certain cases
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Circular No. 103/22/2019-GST dated 28-06-2019 |
Issue-1 |
Various services are being provided by the port authorities to its clients in relation to cargo handling. Some of such services are in respect of arrival of wagons at port, haulage of wagons inside port area up-to place of unloading, siding of wagons inside the port, unloading of wagons, movement of unloaded cargo to plot and staking hereof, movement of unloaded cargo to berth, shipment/loading on vessel etc. Doubts have been raised about determination of place of supply for such services i.e. whether the same would be determined as per section 12(2) or 13(2) or 12(3) of the IGST Act. |
Cl |
It is hereby clarified that such services are ancillary to or related to cargo handling services and are not related to immovable property. Accordingly, the place of supply of such services will be determined as per section 12(2) or 13(2) of the IGST Act, depending upon the terms of the contract between the supplier and recipient of such services. |
Issue-2 |
Doubts have been raised about the place of supply in case of supply of various services on unpolished diamonds such as cutting and polishing activity which have been temporarily imported into India and are not put to any use in India? |
Cla |
Place of supply in case of performance based services is to be determined as per the provisions of Section 13(3)(a) of the IGST Act and generally the place of services is where the services are actually performed. But an exception has been carved out in case of services supplied in respect of goods which are temporarily imported into India for repairs or for any other treatment or process and are exported after such repairs or treatment or process without being put to any use in India, other than that which is required for such repairsor treatment or process. In case of cutting and polishing activity on unpolished diamonds which are temporarily imported into India are not put to any use in India, the place of supply would be determined as per the provisions contained in section 13(2) of the IGST Act. |
[1] Proviso omitted by section 161 of The Finance Act, 2023 dt. 31-03-2023.
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