1. “Time & Place of Supply”
Goods & Service Tax
Central Goods & Service Tax Act, 2017
“Time & Place of Supply”
Bathinda Branch of NIRC of ICAI
Sunday 28th May, 2017
CA Rohit Vaswani,
B.Com, FCA, ACMA, LLB, DISA (ICAI)

2. Marching towards GST Republic Day, 26th January, 2017
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3. CGST/SGST/IGST
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4. Five Pillars of GST Law Liability to Pay- Sec.9
Time of Supply- Sec12 & 13
Place of Supply- IGST Act,2017 Sec
Value of Taxable Supply- Sec.15
Input Tax Credit- Sec.16-21
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5. “Time of Supply & Valuation”
“Time of Supply of Goods” – Sec. 12
“Time of Supply of Goods” – Sec. 13
“IGST- Place of Supply” – Sec.7 to 13
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6. “Time of Supply” (ToS)
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7. Time of Supply Section-12 & 13
Time of Supply of “Goods”
Sec-12
Time of Supply of “Services”
Sec-13
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8. Existing Laws- Time/Point of Taxation
Central Excise
Payment of duty at the time of removal of goods (Sec.3, 3A, 4 & 4A)
Service Tax
Issue of Invoice for services provided or to be provided OR receipt of payment, whichever is earlier. (Point of Taxation Rules-2011)
VAT
At the time of transfer of property in Goods. Conditions of Sale to be fulfilled.
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9. Time of Supply of “GOODS”- Sec.12
Time of Supply of Goods shall be earliest of following dates:-
The date of Issue of Invoice by Supplier
The last date on which he is required to issue invoice u/s 31
The date of receipt of Payment with respect to the supply
The supply shall be deemed to have been made to the extent covered under invoice or payment
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10. Time of Supply of “GOODS”- Sec.12
Date on which payment is made
When GST is Liable to be paid on “Reverse Charge”-Earliest of these three events.
The date immediately following 30 days from issue of invoice
where it is not possible to determine the time of supply as per above, the time of supply shall be the date of entry in the books of account of the recipient
Date of receipt of Goods
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11. Time of Supply of “GOODS”- Sec.12
In case of supply of vouchers, by whatever name called, by a supplier, the time of supply shall be-
the date of issue of voucher, if the supply is identifiable at that point; or
the date of redemption of voucher, in all other cases
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12. Time of Supply of “GOODS”- Sec.12
If “Time of Supply” is not possible to be determined under forgoing provisions-
In any other case- the date on which GST is paid
If periodic return to be filed- the due date of filing return
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13. Time of Supply of “SERVICES”- Sec.13 (Earliest of following)
The date of issue of invoice by the supplier
The last date on which he is required to issue the invoice u/s 31
The date on which the supplier receives the payment
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14. Time of Supply of “Services”- Sec.13
When GST is Liable to be paid on “Reverse Charge”-Earliest of these two events.
The date immediately following 60 days from issue of invoice
where it is not possible to determine the time of supply as per above, the time of supply shall be the date of entry in the books of account of the recipient
Date on which payment is made
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15. Time of Supply of “Services”- Sec.13
in case of supply by associated enterprises, where the supplier of service is located outside India, the time of supply shall be the date of entry in the books of account of the recipient of supply or the date of payment, whichever is earlier
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16. Time of Supply of “Services”- Sec.13
In case of supply of vouchers, by whatever name called, by a supplier, the time of supply shall be-
the date of issue of voucher, if the supply is identifiable at that point; or
the date of redemption of voucher, in all other cases
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17. Time of Supply of “SERVICES”- Sec.13
If “Time of Supply” is not possible to be determined under forgoing provisions-
In any other case- the date on which GST is paid
If periodic return to be filed- the due date of filing return
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18. Change in Rate of Tax- Supply of Goods or Services (Sec.14)
Where the Goods or Service have been supplied before the change in rate of tax
Where Invoice Issued and Payment also received after change in Rate
Date of receipt of payment OR Date of Invoice, whichever is earlier.
Where Invoice Issued Prior to change in rate and Payment is received after change in rate
Date of Invoice
Where Payment is received Prior to change in rate and Invoice is issued after change in rate
Date of receipt of payment
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19. Change in Rate of Tax- Supply of Goods or Services (Sec.14)
Where the Goods or Service have been supplied after the change in rate of tax
Where Payment is received after change in Rate, but Invoice issued prior to change in Rate
Date of receipt of payment
Where Invoice Issued Prior to change in rate and Payment is also received prior to change in rate
Date of Invoice or receipt of payment, whichever is earlier
Where Payment is received Prior to change in rate and Invoice is issued after change in rate
Date of issue of Invoice
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20. Change in Rate of Tax- Supply of Services (Sec.14)
the date of receipt of payment”
shall be the date on which the payment is entered in the books of account of the supplier
or the date on which the payment is credited to his bank account,
whichever is earlier
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21. IGST (Integrated Goods & Service Tax)
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22. “Place of Supply- Goods”
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23. Constitution of India Article-1
Name and territory of the Union.
(1) India, that is Bharat, shall be a Union of States.
(2) The States and the territories thereof shall be as specified in the First Schedule.
(3) The territory of India shall comprise—
(a) the territories of the States;
(b) the Union territories specified in the First
Schedule; and
(c) such other territories as may be acquired.
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24. Existing Constitutional Provisions
Article-269(3)
Entry-92A of Union List
Parliament may by law formulate principles for determining when a sale or purchase of, or consignment of, goods takes place in the course of inter-State trade or commerce.
[92A. Taxes on the sale or purchase of goods other than newspapers, where such sale or purchase takes place in the course of inter-State trade or commerce.
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25. Constitutional Provisions for GST (Inserted w.e.f. 16.09.2016)
Article-269A(5)
Article-246A(2)
Parliament may, by law, formulate the principles for determining the place of supply, and when a supply of goods, or of services, or both takes place in the course of inter-State trade or commerce.
(2) Parliament has exclusive power to make laws with respect to goods and services tax where the supply of goods, or of services, or both takes place in the course of inter-State trade or commerce
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26. Constitutional Provisions for GST (Inserted w.e.f. 16.09.2016)
Article-366 (12A) “goods and services tax” means any tax on supply of goods, or services or both except taxes on the supply of the alcoholic liquor for human consumption
Article-266 (26A) “Services” means anything other than goods;
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27. Overview of Relevant Provisions
Sec.7
Inter-State supply
Sec.8
Intra-state supply
Sec.9
Supplies in territorial waters
Sec.10
Place of supply of goods other than supply of goods imported into, or exported from India
Sec.11
Place of supply of goods imported into, or exported from India
Sec.12
Place of supply of services where location of supplier and recipient is in India
Sec.13
Place of supply of services where location of supplier or location of recipient is outside India.
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28. Place of Supply Vis a vis ITC
Registered Location of recipient
State in which Place of Supply falls
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29. Invoice Rules Rule-1 “Tax Invoice”
(m) place of supply along with the name of State, in case of a supply in the course of inter-State trade or commerce
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30. Definitions: CGST Act, 2017
Sec.2 (64): “intra-State supply of goods” shall have the same meaning as assigned to it in section 8 of the Integrated Goods and Services Tax Act
Sec.2 (65): “intra-State supply of services ” shall have the same meaning as assigned to it in section 8 of the Integrated Goods and Services Tax Act
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31. Definitions: CGST Act, 2017
Sec.2 (2): “address of delivery” means the address of the recipient of goods or services or both indicated on the tax invoice issued by a registered person for delivery of such goods or services or both
Sec.2 (3): “address on record” means the address of the recipient as available in the records of the supplier
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32. Definitions: IGST Act, 2017
Sec. 2(14) “location of the recipient of services” means:
(a) where a supply is received at a place of business for which the registration has been obtained, the location of such place of business;
(b) where a supply is received at a place other than the place of business for which registration has been obtained (a fixed establishment elsewhere), the location of such fixed establishment;
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33. Definitions: IGST Act, 2017
(c) where a supply is received at more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the receipt of the supply; and
(d) in absence of such places, the location of the usual place of residence of the recipient
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34. Definitions: IGST Act, 2017
Se.2(15): “location of the supplier of services” means:
(a) where a supply is made from a place of business for which the registration has been obtained, the location of such place of business;
(b) where a supply is made from a place other than the place of business for which registration has been obtained (a fixed establishment elsewhere), the location of such fixed establishment;
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35. Definitions: IGST Act, 2017
(c) where a supply is made from more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the provision of the supply; and
(d) in absence of such places, the location of the usual place of residence of the supplier
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36. Zero-rated supply Sec.2(23)
“zero-rated supply” shall have the meaning assigned to it in section 16
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37. Two Most Important “Terms”
Location of Supplier
Place of Supply
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38. What is Inter-State Supply ?
Inter-State Supply of “Goods”
General Rule- Sec.7(1), (2)
Where location of supplier and place of supply are in different states/UT. (Subject to Sec.10)
Supply of Goods during Import before they crosses customs frontiers of India
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39. What is Inter-State Supply ?
Inter-State Supply of “Services”
General Rule- Sec.7(3), (4)
Where location of supplier and place of supply are in different states/UT. (Subject to Sec.12)
Supply of Services imported into the territory of India shall be Inter-State Supply of Services
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40. What is Inter-State Supply ?
Inter-State Supply of “Goods and/or “Services”- Sec.7(5), (6) & (7)
When Supplier is located in India and Place of Supply is outside India, shall be Inter-State Supply
Supply to or by SEZ Developer/SEZ Unit, shall be Inter-State Supply
Any Supply in the taxable territory other than Intra-State Supply, shall be Inter-State Supply
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41. What is Intra-State Supply ?
Where location of supplier and place of supply are in the same state
Supply of “Goods”
Sec.8(1)
Supply of “Services”
Sec.8(2)
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42. Exceptions to Intra-state supply
Supply to or by SEZ
Goods imported till they reach India
supplies made to a tourist referred to in section 15
Supply of “Goods”
Supply of “Services”
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43. Distinct Persons Expl-1
an establishment in India and any other establishment outside India
an establishment in a State/UT and any other establishment outside that State/UT
Different business verticals registered in the same state/UT
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44. Branch/agency/representational office Expl-2
A person carrying on a business through
a branch or
an agency or
a representational office in any territory
shall be treated as having an establishment in that territory
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45. Supplies in territorial waters Sec.9
If “location of the supplier” or “place of supply” is in territorial waters-
Coastal State/UT where the nearest point of the appropriate baseline is located, shall be deemed to be location/place
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46. Refund of IGST to International Tourist Sec.15
The integrated tax paid by tourist leaving India on any supply of goods taken out of India by him shall be refunded in such manner and subject to such conditions and safeguards as may be prescribed.
Explanation.––For the purposes of this section, the term “tourist” means a person not normally resident in India, who enters India for a stay of not more than six months for legitimate non- immigrant purposes
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47. Zero rated supply Sec.16 Export of Goods and/or Services
Supply of Goods and/or services to SEZ
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48. ITC Refund Zero rated supply Sec.16
ITC can be claimed for making zero rated supply even it may be exempt supply
ITC
In case of export of goods/services under Bond, un-utilized ITC can be claimed as refund
In case of export of goods/services with payment of IGST, refund can be claimed for tax paid on goods/services.
Refund
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49. Place of Supply of “Goods” Sec.10
The place of supply of such goods shall be the location of the goods at the time at which the movement of goods terminates for delivery to the recipient
Where Supply involves movement of Goods
it shall be deemed that the said third person has received the goods and the place of supply of such goods shall be the principal place of business of such person
Where Goods are delivered on the direction of third person
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50. Ship to-bill to/sale in transit
whether acting as an agent or otherwise,
before or during movement of goods,
either by way of transfer of documents of title to the goods or otherwise
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51. Place of Supply of “Goods” Sec.10
The Place of Supply shall be location of such goods at the time of delivery.
Where Supply does not involves movement of Goods
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52. Place of Supply of “Goods” Sec.10
Place of Supply shall be place of assembly or installation.
Where Goods are assembled or installed at site
Place of Supply shall be the location at which Goods are taken on board.
Where Goods are supplied on board a conveyance
the place of supply shall be determined in such manner as may be prescribed
Where Place of Supply cannot be determined
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53. Place of Supply in case of Import/Export of “Goods” Sec.11
Place of Supply shall be location of importer
In case of Import of Goods
Place of Supply shall be location outside India
In case of Export of Goods
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54. “Place of Supply- Services”
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55. Place of Supply of “Services”: Sec.12
Where location of Supplier and recipient are in India- General Rule
Services made to registered person- place of supply shall be location of such person
Services made to any other person- place of supply shall be location of recipient, if address on record exists
Services made to any other person- place of supply shall be location of supplier, if address on record does not exists
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56. Place of Supply of “Services”: Sec.12
In Case of Immovable Property- Place of Supply shall be location of immovable property, boat or vessel. Sec.12(3)
(c) Accommodation for marriage, functions etc.
Ancillary services in relation to (a), (b) & (c).
If Immovable property or boat/vessel is located out of India- location of recipient
(a) Directly in relation to immovable property
(b) Lodging accommodation in hotel, guest house, house boat etc.
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57. Place of Supply of “Services”: Sec.12
Place of Supply shall be the location where the services are actually performed
In case of restaurant and catering services, personal grooming, fitness, beauty treatment, health service including cosmetic and plastic surgery
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58. Place of Supply of “Services”: Sec.12
In relation to training and performance
appraisal to-
a registered person, shall be the location of such person
a person other than a registered person, shall be the location where the services are actually performed
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59. Place of Supply of “Services”: Sec.12
The Place of Supply shall be the place where the event is actually held or where the park or such other place is located
Services provided by way of admission to a cultural, artistic, sporting, scientific, educational, or entertainment event or amusement park or any other place and services ancillary thereto-
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60. Place of Supply of “Services”: Sec.12
Organization of a cultural, artistic, sporting, scientific, educational or entertainment event conference, fair, exhibition, celebration or similar events including ancillary services and sponsorship of above events
In case provided to a registered person- place of supply shall be location of such person
In case provided to any other person- place of supply shall be the place where the event is actually held
If event is held outside India- Place of Supply shall be the location of the recipient
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61. Place of Supply of “Services”: Sec.12
Provided to any other person, shall be the location at which such goods are handed over for their transportation
Provided to a registered person, shall be the location of such person
Supply of services by way of transportation of goods, including by mail or courier
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62. Place of Supply of “Services”: Sec.12
Supply of passenger transportation service
To a registered person, shall be the location of such person
To any other person, shall be the place where the passenger embarks on the conveyance for a continuous journey
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63. Place of Supply of “Services”: Sec.12
Place of supply shall be the location of the first scheduled point of departure of that conveyance for the journey
Supply of services on board a conveyance such as vessel, aircraft, train or motor vehicle
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64. Place of Supply of “Services”: Sec.12
Telecommunication services including data transfer, broadcasting, cable and direct to home television services
In case of fixed telephone line services, where installed for services
In case of mobile connection, location of billing
address of the recipient of services on record of the supplier
services are provided on prepayment through a voucher or any other means, Address of selling agent or where payment is received.
In any other case, address of recipient as per record of the supplier.
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65. Place of Supply of “Services”: Sec.12
Banking and other financial services including stock
broking services
Place of Supply shall be, the location of the recipient of services on the records of the supplier of services
If the location of the recipient of services is not on the records of the supplier, the place of supply shall be location of the supplier of services
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66. Place of Supply of “Services”: Sec.12
Supply of insurance services
To a registered person, be the location of such person
To a person other than a registered person, be the location of the recipient of services on the records of the supplier of services
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67. Place of Supply of “Services”: Sec.12
Advertisement services to the Central Government, a State Government, a statutory body or a local authority
Place of supply shall be taken as located in each of such States and the value of such supplies specific to each State shall be in proportion to amount attributable to service provided
In the absence of any contract or agreement, on such other basis as may be prescribed
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68. Place of Supply of “Services”- Import /Export of Services Sec.13
In case the location of the recipient of service is not available in the ordinary course of business, the place of supply shall be the location of the supplier of service
The place of supply of services except the services specified in subsections shall be the location of the recipient of service
Where the location of the supplier of service or the location of the recipient of service is outside India
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69. Place of Supply of “Services”- Import /Export of Services Sec.13
Services on goods physically made available by recipient
Sec.13(3)(a)
Where the services are performed
Services on Goods temporarily imported
Proviso to 13(3)(a)
Recipient of Service
Services provided from Remote Location
Location of Goods
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70. Place of Supply of “Services”- Import /Export of Services Sec.13
Services requiring physical presence of individual
Sec.13(3)(b)
Where services are performed
In relation to immovable property
Sec.13(4)
Location of Immovable Property
Organization of event (Cultural, artistic, sporting etc.)
Sec.13(5)
Where the event is actually held
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71. Place of Supply of “Services”- Import /Export of Services Sec.13
If above services are provided in taxable territory also
Sec.13(6)
Location of taxable territory
If above services are provided in more than one state
Sec.13(7)
Each such state proportionately
Services provided by Banks or NBFC
Sec.13(8)
Location of Supplier
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72. Place of Supply of “Services”- Import /Export of Services Sec.13
Intermediary Services
Sec.13(8)
Location of Supplier
Hiring of vehicles up to one month
Transportation of Goods
Sec.13(9)
Destination of Goods
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73. Place of Supply of “Services”- Import /Export of Services Sec.13
Transportation of passenger
Sec.13(10)
Where passenger embarks for journey
On board a conveyance
Sec.13(11)
First scheduled point of departure
Online information or database access services
Sec.13(12)
Location of recipient of service
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74. Place of Supply of “Services”- Import /Export of Services Sec.13
For Sec.13(12):
Recipient shall be deemed to be in Taxable Territory, if to non-contradictory conditions are satisfied:
Location of address through internet is in taxable territory
The IP of device used is in taxable territory
Billing Address is in taxable territory
If Credit Card etc. has been issued in taxable territory
Bank account used for payment is in taxable territory
Country code of SIM Card is of taxable territory
Location of fixed land line is in taxable territory
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75. Place of Supply of “Services”- Import /Export of Services Sec.13
In order to prevent double taxation or non-taxation of the supply of a service Or for the uniform application of rules
the Government shall have the power to notify any description of services or circumstances in which the place of supply shall be the place of effective use and enjoyment of a service
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76. Thank You
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