Place of Supply for Services

Place of supply for services determines the applicability of IGST or CGST or SGST on a tax invoice. India has adopted a dual GST model, wherein the Central Government and State Government would simultaneously levy GST. Thus based on the type of transaction, i.e., interstate or intra-state and depending on the nature of supply, i.e., goods or services, the supplier would have to differentiate between IGST or CGST and SGST collected on all tax invoices. Place of supply for goods was covered in a separate article. In this article, the place of supply for services is covered.

Architects, Engineers, Real Estate Agents & Construction Work

Place of supply for services provided architects, interior decorators, surveyors, engineers and other related experts including estate agents relating to an immovable property or for carrying out or coordination of construction work would be the location of the immovable property.

Event Management & Wedding Planning

Place of supply for event management or organising any marriage or reception or official, social, cultural, religious or business function at a property would be the location of the immovable property. Hence, if an event management company helps with wedding program, the place of supply would be the location of the wedding venue.

Restaurants, Catering Services, Fitness Centres and Beauty Parlours

The place of supply for restaurant and catering services, personal grooming, fitness, beauty treatment, health service would be the location where the services are actually performed. Hence, in case of a restaurant or fitness centres, the place of supply would be the restaurant or fitness centre itself. In case of catering services, the place of supply would be the place of supply of food.

Hotels, Guest Houses and Clubs

Place of supply for lodging accommodation by a hotel, inn, guest house, homestay, club or campsite would be the physical location where the lodging accommodation is present.

Training & Appraisal Services

The location of the service recipient shall act as the Place of supply for training and appraisal services if the recipient registered under GST. If the recipient yet to register under the GST, then, the place of supply of service shall act as the location where the services carried out.

Admission to Cultural or Entertainment Event or Amusement Parks

Place of supply of services for services provided relating to admission to a cultural, artistic, sporting, scientific, educational, entertainment event or amusement park shall act as the place where the event actually held or as per the location of the park. Place of supply for services ancillary to organisation of any of the events or services above would be:

The location of the recipient if the recipient registered under GST.
The location of the event if the person yet to register under GST. If the location is held outside India, then the place of supply would be the location of the recipient.

Transportation of Goods

Place of supply for services by way of transportation of goods, including by mail or courier would be the location of the recipient if registered under GST. If the recipient is not registered, then the location at which goods were handed over for their transportation would be the place of supply. The place of supply of services of transportation of goods, other than by way of mail or courier, would be the place of destination of the goods.

Transportation of Passengers

Place of supply for passenger transportation services shall act as the location of the registered person if the recipient registered under GST. If the recipient yet to register with GST, the place of supply shall apply where the passenger embarks on the journey. For services provide onboard a vehicle or vessel or an aircraft or train, the place of supply would be the location of the first scheduled point of departure of the journey.

Telecommunication, Broadcasting, Cable and DTH Services

Place of supply for telecommunication services including data transfer, broadcasting, cable and direct to home television services to any person would be as follows:

In case of services by way of fixed telecommunication line, leased circuits, internet leased circuit, cable or dish antenna - the location where the telecommunication line, cable connection or dish antenna is installed for receipt of services would be the place of supply.
In case of mobile telecommunication or internet services provided on a post-paid basis, be the location of billing address of the recipient of services would be the place of supply.
In case of pre-paid mobile, internet service or DTH services, if the services are sold through a distributor, the address of the distributor would be the place of supply.
In case of distribution by any person to the final subscriber, the location where such prepayment is received or voucher is sold would be the place of supply,
In all other cases, the address of the recipient as per the records of the supplier of services would be the place of supply.
If the address is not available, then the location of the supplier of the service would be the place of supply.

Banking, Financial and Stock Broking Services

Place of supply for banking or financial services, including stockbroking services, would be the location of the recipient of services on the records of the supplier of services. If the location of the recipient of services is not on the records of the supplier, the place of supply would be the location of the supplier of services.

Insurance Services

The place of supply of insurance services to a registered person would be the location of the recipient. If the recipient yet to register with GST, the location of the recipient of services on the records of the supplier of services shall act as place of supply of service.

OIDAR Services

For OIDAR services, place of supply would be the location of the recipient of services. The person receiving OIDAR services, located in taxable territory, shall satisfy any of the two following conditions for determining the GST:

The location of address presented by the recipient of services through the internet is in the taxable territory.
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.
The billing address of the recipient of services is in the taxable territory.
The internet protocol address of the device used by the recipient of services is in the taxable territory.
The bank account of the recipient of services used for payment registered in the taxable territory.
The country code of the subscriber identity module card used by the recipient of services is of taxable territory.
The location of the fixed landline through which the service received by the recipient falls under the taxable territory