CHAPTER V – PLACE OF SUPPLY OF GOODS OR SERVICES OR BOTH ( Section 10 to 14)
PLACE OF SUPPLY OF GOODS OTHER THAN SUPPLY OF GOODS IMPORTED INTO, OR EXPORTED FROM INDIA [SECTION 10]
SECTION 10 (1)
(i) Supply involving movement of goods [Section 10(1)(a)]
(ii) Supply involving movement of goods where goods are delivered to recipient on the instruction of third person – ‘Bill to Ship to’ Supply [Section 10(1)(b)]
(iii) Supply not involving movement of goods [Section 10(1)(c)]
(iv) Supply of goods to an unregistered person [Section 10(1)(ca)]
(v) Supply involving installation or assembly of goods [Section 10(1)(d)]
(vi) Goods supplied on board a conveyance [Section 10(1)(e)]
SECTION 10 (2)
Where the place of supply of goods cannot be determined, the place of supply shall be determined in such manner as may be prescribed.
PLACE OF SUPPLY OF GOODS IMPORTED INTO, OR EXPORTED FROM INDIA [SECTION 11]
(i) Import of goods [Section 11(a)]
(ii) Export of goods [Section 11(b)]
PLACE OF SUPPLY OF SERVICES WHERE LOCATION OF SUPPLIER OF SERVICE AND THE LOCATION OF THE RECIPIENT OF SERVICE IS IN INDIA [SECTION 12]
(i) Default provision [Section 12(2)]
(ii) Services in relation to an immovable property or lodging accommodation in a hotel/boat/vessel etc. [Section 12(3)]
(iii) Restaurant and catering service, personal grooming, fitness, beauty and health services [Section 12(4)]
(iv) Training and performance appraisal services [Section 12(5)]
(v) Services by way of ADMISSION to events/amusement park/other places [Section 12(6)]
(vi) ORGANISATION of events [Section 12(7)]
(vii) Transportation of goods including mail or courier [Section 12(8)]
(viii) Passenger transportation service [Section 12(9)]
(ix) Service supplied on board a conveyance [Section 12(10)]
(x) Telecommunication service [Section 12(11)]
(xi) Financial and stock broking services [Section 12(12)]
(xii) Insurance services [Section 12(13)]
(xiii) Advertisement service to the Government [Section 12(14)]
PLACE OF SUPPLY OF SERVICES WHERE LOCATION OF SUPPLIER OR LOCATION OF RECIPIENT IS OUTSIDE INDIA [SECTION 13]
(i) Default provision [Section 13(2)]
(ii) Performance based services [Section 13(3)]
(iii) Services in relation to immovable property [Section 13(4)]
(iv) Services by way of admission to and/or organization of events or celebrations etc. [Section 13(5)]
(v) Banking and financial services, intermediary services and hiring of means of transport [Section 13(8)]
(vi) Transportation services [Sub-sections (10) and (11) of section 13]
(vii) Online information and database access or retrieval services (OIDAR) [Section 13(12)]
(viii)Notified services [Section 13(13)]
| Situation | Section | Place of Supply | Examples |
| PLACE OF SUPPLY OF GOODS OTHER THAN SUPPLY OF GOODS IMPORTED INTO, OR EXPORTED FROM INDIA [SECTION 10] | |||
| (i) Supply involving movement of goods | [Section 10(1)(a)] | Place of Delivery | (1) MA Pvt. Ltd. of Nasik, Maharashtra sells 10 refrigerators to MB Pvt. Ltd. of Pune, Maharashtra for delivery at place of business of MB Pvt. Ltd. in Pune. The place of supply is Pune in Maharashtra. (2) MA Pvt. Ltd. of Nasik, Maharashtra sells 20 refrigerators to MC Pvt. Ltd. of Ahmedabad, Gujarat for delivery at place of business of MC Pvt. Ltd. in Ahmedabad. The place of supply is Ahmedabad. |
| (ii) Supply involving movement of goods where goods are delivered to recipient on the instruction of third person – ‘Bill to Ship to’ Supply | [Section 10(1)(b)] | Principal place of business of such third person ( who gives the order) and not of the actual recipient. | (3) X & Co. (a supplier registered in Uttar Pradesh having principal place of business at Noida) asks Y & Co. of Ahmedabad, Gujarat to deliver 50 washing machines to its buyer Z & Co. at Jaipur, Rajasthan. In this case, two supplies are involved, one between X & Co. and Z & Co. and other between Y & Co. and X & Co. While the former supply is covered under clause (a) of section 10(1), the latter one, i.e. between Y & Co. and X & Co. is covered under clause (b) of section 10(1). Accordingly, in this case, the place of supply of goods is not the location of delivery of such goods (Jaipur) but the principal place of business of third person, i.e. principal place of business of X & Co. located at Noida. |
| (iii) Supply not involving movement of goods | [Section 10(1)(c)] | (4) MA Pvt. Ltd. (New Delhi) has leased its machine (cost Rs. 8,00,000) to MB Pvt. Ltd. (Noida, Uttar Pradesh) for production of goods on a monthly rent of Rs. 40,000. After 14 months MB Pvt. Ltd. requested MA Pvt. Ltd. to sell the machine to it for Rs. 4,00,000, which is agreed to by MA Pvt. Ltd. In this case, there will be no movement of goods and the same will be sold on as is where is basis. Thus, the location of the machine at the time of such sale will be the place of supply, i.e. Noida. (5) XZ Ltd. (Mumbai, Maharashtra) opens a new branch office at Gurugram, Haryana. It purchases a building for office from KTS Builders (Gurugram). It also enters into a separate contract with KTS Builders for purchase of preinstalled office furniture and fixtures in the building. Though there will be no GST liability on purchase of building (as sale of building is covered under Schedule III to CGST Act), office furniture and fixtures will be liable to GST. Since there is no movement of office furniture and fixtures, the place of supply of such goods is their location at the time of delivery to the recipient (XZ Ltd.), i.e. Gurugram. |
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| (iv) Supply of goods to an unregistered person | [Section 10(1)(ca)] | Where the address of the unregistered person is recorded in the invoice —- Place of supply is location as per address of unregistered person recorded in the invoice
Where the address of the unregistered person is not recorded in the invoice —–Place of supply is location of the supplier |
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| (v) Supply involving installation or assembly of goods | [Section 10(1)(d)] | The site at which the machine is installed |
MA Pvt. Ltd. (New Delhi) purchases a machine from MB Pvt. Ltd. (New Delhi) for being installed in its factory at Noida, Uttar Pradesh. The place of supply is the site at which the machine is installed, i.e. Noida. (7) Pure Refineries (Mumbai, Maharashtra) gives a contract to PQ Ltd. (Ranchi, Jharkhand) to supply a machine which is required to be assembled in a power plant in its refinery located in Kutch, Gujarat. The place of supply is the site of assembly of machine, i.e. Kutch even though Pure refineries is located in Maharashtra. |
| (vi) Goods supplied on board a conveyance | [Section 10(1)(e)] | (8) Mr. X (New Delhi) boards the New Delhi-Kota train at New Delhi. He sells the goods taken on board by him (at New Delhi), in the train, at Jaipur during the journey. The place of supply of goods is the location at which the goods are taken on board, i.e. New Delhi and not Jaipur where they have been sold. | |
| PLACE OF SUPPLY OF GOODS IMPORTED INTO, OR EXPORTED FROM INDIA [SECTION 11] | |||
| (i) Import of goods | [Section 11(a)] | (9) MC Pvt. Ltd. imports electric kettles from China for its Kitchen Store in Noida, Uttar Pradesh. MC Pvt. Ltd. is registered in Uttar Pradesh. The place of supply is Noida. | |
| (ii) Export of goods | [Section 11(b)] | (10) MR Pvt. Ltd. (New Delhi) exports spices from New Delhi to London, UK. The place of supply is London. | |
| PLACE OF SUPPLY OF SERVICES WHERE LOCATION OF SUPPLIER OF SERVICE AND THE LOCATION OF THE RECIPIENT OF SERVICE IS IN INDIA [SECTION 12] | |||
Question 1 : Mr. Sunil (unregistered person under GST) is a resident of Delhi and currently posted in Dehradun, Uttarakhand. He went on an official visit to Arunachal Pradesh. He purchased a leather bag on 15.10.2023 from Arunachal Pradesh and shop keeper M/s ABC issued a tax invoice in the name of Mr. Sunil only. Mr. Sunil returned back to Dehradun along with leather bag. Determine the ‘place of supply’ for tax invoice issued by M/s. ABC to Mr. Sunil.
Answer : In case of supply of goods to an unregistered person over the counter (OTC), where address of such person is not recorded in the invoice, the place of supply is location of the supplier.
Since in the given case, the address of Mr. Sunil is not recorded in the invoice, place of supply is location of M/s ABC i.e. Arunachal Pradesh.
It is Intra-state Sale and CGST and SGST will be applied
Question 2 : Mr. Pintu (unregistered person under GST), resident of Karnal, Haryana went to visit Shimla, Himachal Pradesh along with his family during holidays in the month of October 2023. Due to some medical emergency, he purchased some medicines on 20.10.2023 from a medical store at Mall Road, Shimla and the tax invoice was issued in the name of Mr. Pintu mentioning the address as Karnal, Haryana only. The medicines purchased were consumed in Shimla during the period of stay.
Answer : In case of supply of goods to an unregistered person over the counter(OTC), where address of such person is recorded in the invoice (i.e. name of State of said person is recorded in invoice), the place of supply is location as per said address.
Thus, in the given case, since the address of Mr. Pintu is recorded in the invoice, place of supply is Karnal / Haryana. It is Inter state Sale and IGST will be applied
Questions on advertisement services
Question 1 :Crystal Clear Water Ltd. (CCWL) is a manufacturer of mineral water and registered under GST in Mumbai, Maharashtra. CCWL enters into a contract with Global Advertising Agency (GAA) registered under GST in Ahmedabad, Gujarat for displaying its advertisement on hoardings at an awards event organized at Convention Centre Gandhinagar, Gujarat on 31.10.2023. the structure on which the hoardings are to be displayed is taken on rent by GAA from Mr. Kapoor (unregistered person based inDelhi.). Determine the ‘place of supply’ for tax invoice to be raised by GAA to CCWL.
Answer :In the given case, services provided by GAA to CCWL are advertisement services.
The place of supply of such services made to a registered person is location of such person.
Thus, place of supply for tax invoice to be raised by GAA to CCWL is location of CCWL, i.e. Mumbai, Maharashtra