Chapter V of the IGST Act, section 10 to section 13 defines the situations and the relevant place of supplies. It also provides principle to determine the place of supply of goods and Services separately. The place of supply of goods and services in Import and Export have also be defined under these sections. Since nature of taxation and cross utilization of ITC depends very much on nature of supplies, it has become very important now to develop understanding whether place of supply in any particular transaction would be treated as inter-state supply or intra-State supply. Therefore, different situations have been discussed here to ascertain as to what would be the place of supply in that condition.
Situation |
Place of Supply |
(i) Where supply involves movement of goods by the supplier, recipient or any other person. |
The location where the movement of goods terminate for delivery to recipient. |
(ii) Where the goods are delivered to the recipient or any person on the direction of third person by way of transfer of document/title or otherwise, it shall be deemed that third person has received the goods |
Place of supply shall be the principal place of business of such person |
(iii) Where there is no movement of goods either by supplier or recipient |
Location of such goods at the time of delivery to the recipient |
(iv) Where goods are assembled or in-
stalled at the site |
Place of Supply shall be the place where the goods are assembled or installed |
(v) Where the goods are supplied on board a conveyance, like vessel, aircraft, train or motor vehicle |
The Place of Supply shall be the place
where the goods where taken on board |
In case place of supply cannot be determined as explained above manner to determine place of supply of goods can be prescribed by the Central Government on the recommendation of the council.
PLACE OF SUPPLY OF GOODS IMPORTED INTO AND EXPORT FROM INDIA
Place of supply of goods imported into India shall be the location of importer. But it would be treated as Inter-State Supply.
Place of supply of goods exported from India shall be the location outside India. But it would be treated as Inter-State Supply. |
