Place Of Supply Of Goods Under Gst

Written by KnowYourGST Team under GST

Determination of place of supply of goods is imperative under GST as it will determine the nature of tax to be levied. GST is a destination based tax and hence makes the concept of the place of supply important under GST.

Place of supply of goods under GST will determine whether the transaction will be classified as inter-state or intra-state. If supply is intra-state, CGST and SGST are applicable and if it is inter-state, IGST is applicable.

Here, we will talk about the place of supply of goods in detail.

Place of Supply of goods is generally the registered place of business of the recipient of goods. Let us understand the provisions of place of supply of goods through the table below.

Nature of

Transaction

Place of

 Supply of Goods

Example

 

 

 

 

Where supply involves a movement of goods.

 

 

 

 

Location of goods at the time of delivery.

  • Mr X of Lucknow, UP sells goods to Mr Y of Kanpur, UP. Place of supply: Kanpur

Tax: CGST and SGST

  • Mr X of Lucknow, UP sells goods to Mr Y of Mumbai, Maharashtra.

Place of supply: Mumbai

Tax:  IGST

 

 

 

Where supply involves a movement of goods, on the direction of the third party.

 

 

 

Principal place of business of the third party.

 

  • Mr P of Nagpur, Maharashtra buys goods from Mr Q of Kanpur, UP and directs the delivery of goods to Lucknow, UP.

Place of supply: Nagpur

Tax: IGST

 

 

 

Where supply does not involve a movement of goods.

 

 

 

Location of goods at the time of delivery.

 

  • Mr X, registered in Lucknow, UP opens a store in Surat, Gujarat and purchases goods from a dealer in Gujarat.

Place of supply: Gujarat

Tax: CGST and SGST

 

 

 

Installation of goods at the site.

 

 

 

Place of installation

 

  • Mr S of Kanpur, UP asks Mr T of West Bengal to install a plant in Kanpur.

Place of supply: Kanpur

Tax:  CGST and SGST

 

 

Where goods supplied on board a vehicle, a train, vessel or aircraft.

 

 

Location at which the goods were boarded.

 

  • Mr A traveling from Chennai to Mumbai by air. He purchases snacks while on the plane.

Place of supply: Chennai

Tax: CGST and SGST

 

 

Place of Supply in case of Imports and Exports

 

Nature of

Transaction

Place of

 supply of goods

Example

 

 

Import to India

 

 

Location of the Importer

 

  • Mr X of Mumbai imports goods from Singapore.

Place of supply: Mumbai

Tax: IGST

 

 

Export to India

 

 

Location outside India

 

  • Mr Y of Delhi exports goods to The USA.

Place of supply: The USA

Tax: Exempt

 

Place of Supply of Services

 

 

Nature of Services

 

Place of Supply

 

Services relating to immovable Property.

  • Location of Immovable Property, if the property is located in India.
  • Location of Recipient, if the property is located outside India.

 

Admission to an event or amusement Park.

 

Location of the event or amusement park. 

 

Supply of service on board a vehicle, vessel a train or aircraft.

 

Location of first scheduled departure.

 

Banking and Financial Services

  • Location of the service recipient, if available, if not,
  • Location of the service provider.

 

Services of restaurants, catering, fitness, grooming and health services etc.

 

Location where service is provided.

 

Insurance

  • Location of the recipient, if registered.
  • Location of the recipient as per record of the service provider, if unregistered.

 

Where both service provider and recipient are required to be physically present

 

Location of service provided.

 

 

 

Telecommunication services

  • In case of prepaid mobile or internet connection: Location where payment is made.
  • In case of postpaid line or internet connection: Billing address of the recipient.
  • In case of cable or dish, circuits, etc.: Place of installation

 

 

Training and performance appraisals

  • Location of the recipient, if registered.
  • Location where service is performed, if unregistered.

 

Organising an event

  • Location of recipient, if registered.
  • Location of event, if unregistered.

 

 

Transportation of goods

  • Location of the recipient, if registered.
  • Location where goods are handled for delivery, if unregistered.

 

Passenger transportation

  • Location of the recipient, if registered.
  • Location from where passenger embarks on his journey, if unregistered
     
Author
Posted by Ashwin Galhotra under GST

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