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. |
Tax: CGST and SGST
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. |
Place of supply: Nagpur Tax: IGST |
Where supply does not involve a movement of goods. |
Location of goods at the time of delivery. |
Place of supply: Gujarat Tax: CGST and SGST |
Installation of goods at the site. |
Place of installation |
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. |
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 |
Place of supply: Mumbai Tax: IGST |
Export to India |
Location outside India |
Place of supply: The USA Tax: Exempt |
Place of Supply of Services
Nature of Services |
Place of Supply |
|
Services relating to immovable Property. |
|
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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 |
|
|
Services of restaurants, catering, fitness, grooming and health services etc. |
Location where service is provided. |
|
Insurance |
|
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Where both service provider and recipient are required to be physically present |
Location of service provided. |
|
Telecommunication services |
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Training and performance appraisals |
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Organising an event |
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Transportation of goods |
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Passenger transportation |
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