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GST

Place Of Supply Under GST

place of supply under gst

What is the place of supply where the products are supplied under GST?

Determining the Place of Supply under GST of Goods is important since it determines the kind of tax to be collected. Article 10 of the IGST Act specifies the provisions for establishing the domestic transaction location of supply under GST of commodities. The rules to determine the position of supply of goods other than importation and exportation shall indeed be as follows:

  • Goods Movement

There are cases in which procurement entails commodities moving. The point where items are being shipped to the receiver in such situations is also the place of delivery. In addition, such provision may be made by the seller or the receiver, or by some other individual. 

For Example, Atharva from Mumbai sells refrigerators from Ahmedabad to M/s Sharma Traders. Since this supply entails moving supplies from Mumbai to Ahmedabad, Ahmedabad should also be the place of delivery. Furthermore, IGST will be paying for those supplies. This is because the supplier’s position (Maharashtra) is distinct from the supply site (Gujarat).

  • Goods supplied on behalf of the third party

Scenarios exist where a retailer supplies products on behalf of a third party to a recipient or another individual. In addition, as the handler, or otherwise, before or after the movement of goods the seller supplies these goods. Also, by the conversion of title papers to the products, or otherwise, the seller delivers the goods. The supply is considered obtained by the third party in certain circumstances. And the principal place of business of such an individual is the supply of such items.

For Example, Let’s say Akshay has a business centre registered in Pune. He puts an order to send a package to Aditya who is at Nasik to Vipul Ltd. in New Delhi. As Akshay delivers the products through a third party to Aditya (Vipul Ltd), Pune is the delivery place. That’s Akshay’s reported location. In addition, since the location of the supplier (New Delhi) and the place of delivery, Maharashtra is separate, IGST will be paid for such a supply.

  • No Goods Movement

Often the provider or the receiver supplies which do not require moving products. In such cases, at the time of sale to the recipient, the place of supply is the source of merchandise.

For Example, Shiva goes to Chennai for a holiday from Jaipur. He buys a laptop at Chennai’s Croma shop. As such delivery does not require moving goods; it is Chennai itself that is the place of supply. Chennai is the place of delivery to the receiver at the time the delivery is completed. Now that the source position is the same as the supply location, there is an intra-state supply. Therefore, it will bill CGST + SGST.

  • Goods install or mount on a site

The location of the supply shall be where the products are assembled or mounted at the site.

For Example, In his Jamshedpur plant, Candra Shekhar from Jamshedpur ordered a computer. The supplier, from Kolkata, supplies parts in different countries in the world. Finally, at Chandra Shekhar in Jamshedpur, the computer was successfully mounted. In this case, the supply place will be Jamshedpur, since the machine parts were assembled at Jamshedpur. Such a supply draws IGST because the supplier is distinct in location (West Bangladesh) and the location (Jharkhand).

  • Products on board supplied A Transport

There are also instances of deliveries of goods on a conveyance from a retailer. A submarine, an aircraft, a train, or a motor vehicle belongs to this transport. Therefore, in such situations, the point of delivery is the place where the goods are received.

For Example Howrah – ND Howrah During the journey from Kolkata to New Delhi, Rajdhani Express supplies food. At Mugalsarai in Uttar Pradesh, the train will take food. As the products have been accepted in Mugalsarai, Mugalsarai will be the place of supply (Uttar Pradesh).

What is place of supply of services under GST with example?

The position of the service recipient is generally the place of delivery of services (the recipient needs to be a registered person). If a non-registered individual receives service, the place of delivery shall be:

• Service recipient location (where records of the address are available);

• Service provider’s position otherwise

Services that relate specifically to real estate

  • If Services related to property in India, then the location where the property is located in India. 

For example, if the architectural services of Mr.Abhishek of Chennai are based in Delhi and are in use for Mr. Rohit, then Delhi will be the base location of the service provider. If such property is located in Japan, then, Chennai will be the base location.

  • The position of the receiver if the estate is outside India

Place of supply of services under GST with Example: Mr. P., Kerala resides at a hotel in Udaipur for 5 days. Example: He uses his fitness centre and restaurant and pays for the whole property. As utility in Udaipur was given, Udaipur would be the location of the supply.

Transport Service

The first proposed starting point would be the place of supply of services under GST. For example, the caterer provides on-board catering services in Mumbai-Goa-Mangalore that are not included with fees. The point of supply is located in Mumbai in this case, the first scheduled starting point for that tour.

Service of insurance (whether provided to registered or unregistered person)

The place of Supply will be the Service recipient location. For Example, Mr. A lives in Bhatinda, flies from Chennai to Delhi through Air India, and takes out travel insurance in New Delhi. Bhatinda is the place of delivery and the beneficiary is located on the insurance company reports.

How do I find out where a supplier is under GST?

The provider’s location is normally a place from which delivery is made and is shown on a GST registration certificate as the principal place of operation. If the supplier distributes the provider apart from the places listed on the GST certificate of registration, the supplier can use the place mentioned on the GST certificate of registration. 

In situations where the supplier supplies from more than one site, the provider may handle the supplier’s location, which represents the supply involved. Where the supplier cannot establish where the supply is being made, the person involved shall use the supplier’s regular residence as a place of residence on the GST Invoice for the supplier.

What is the place of supply in the invoice?

Under GST, ‘Place of Supply’ determines whether the transaction is considered intra- or inter-state and is also SGST, CGST, and IGST. Under GST the taxation point, i.e., the GST responsibility shall be assumed when the products and services are delivered.

How can myBillBook help in place of supply under GST? 

GST Software is going to facilitate your life. You should not have to measure the delivery location every time with your sales invoices. In the contacts master, you all need to see the specifics of the buyer. G Sales Invoices can be produced using myBillBook. 

The app will automatically determine your delivery location according to your Customer and GSTIN’s provisions and notify you whether CGST/SGST or IGST will be charged. What you need to do to download the excel copy of your buying invoices for your orders. The rest is done by the machine. 

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