How to Determine the Place of Supply of ‘Specific’ Services

Last updated on July 13th, 2017 at 05:50 pm

We have discussed about the general rules for determining the place of supply of services in our earlier blog. Let us now understand how to determine the place of supply in case of certain specific services.

Type of Service Type of recipient Place of supply Example
Restaurant and catering services Not applicable Location where the service is rendered Manish Caterers in Mumbai, Maharashtra, provides catering services to Mukesh Automobiles for their annual sales event in Mumbai.
Location of supplier: Mumbai, Maharashtra
Place of supply: The catering service is performed in Mumbai, Maharashtra
This is an intrastate supply and the taxes applicable are CGST +SGST
Personal grooming, fitness, beauty treatment and health services, including cosmetic and plastic surgery Not applicable A Chartered Accountant registered in Bangalore, Karnataka, takes an Ayurveda treatment at Dev Ayurveda Centre in Kerala.
Location of supplier: Kerala
Place of supply: The Ayurveda treatment is performed in Kerala
This is an intrastate supply and the taxes applicable are CGST + SGST
Services in relation to training and performance appraisal Registered person Location of the recipient Amogya Institute of Fashion Designing in Bangalore, Karnataka, provides fashion designing training to Mohan Apparel, registered in Chennai, Tamil Nadu. The training is conducted at Amogya Institute’s premises.
Location of supplier: Bangalore, Karnataka
Place of supply: Location of Mohan Apparel is Chennai, Tamil Nadu.
This is an interstate supply and the tax applicable is IGST.
Unregistered person Location where the service is rendered Amogya Institute of Fashion Designing in Bangalore, Karnataka, provides an undergraduate course in fashion designing to students at its premises.
Location of supplier: Bangalore, Karnataka
Place of supply: The training is provided in Bangalore, Karnataka
Hence, this is an intrastate supply and the taxes applicable are CGST and SGST
Services provided through admission to a cultural, artistic, sporting, scientific, educational or entertainment event or amusement park Not applicable Location where the event is held A person in Hyderabad, Andhra Pradesh, buys tickets for the Island Tourism Festival in Andaman and Nicobar Islands from the Department of Tourism of Andaman and Nicobar Islands.
Location of supplier: Andaman and Nicobar Islands
Place of supply: The Island Tourism Festival is held in Andaman and Nicobar Islands
This is an intra-Union Territory supply and the taxes applicable will be CGST+ UTGST
Services provided through organisation of a cultural, artistic, sporting, scientific, educational or entertainment event Registered person Location of the recipient Monica Event Organizers, registered in Mumbai, provides event management services to Komal Automobiles, registered in Delhi, for their annual sales event in Mumbai.
Location of supplier: Mumbai
Place of supply: Komal Automobiles is located in Delhi.
This is an interstate supply and the tax applicable is IGST.
Unregistered person Location where the event is held Monica Event Organizers, in Mumbai, provides event management services to a customer located in Rajasthan, for her wedding reception in Mumbai.
Location of supplier: Mumbai
Place of supply: The wedding is held in Mumbai
This is an intrastate supply and the taxes applicable are CGST + SGST

You can note that in case of services where the place of supply is the location at which the service is rendered or where the event is held, the type of supply is always intrastate.

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29 Comments

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  • Dear sir,
    we are Doining construction works & services in various states we will keep on sending our own construction material like cantering sheets .vibrators , etc to one place to another place

    presently we are doining e sugum for each transaction for movement of vehicle . Can we continue the same process or any change . pl suggest

  • i am providing social media services for hotels and other entities through face book. twitter etc.these entities are located at various parts
    of india.i am registered under service tax. I HV MY OFFICE IN GURGAON.my querries are
    1.what type of service i am covered under GST and what are the rates.presently i am charging 15% as ST
    2.I will be covered under what ie SGST/IGST/UTGST/SGST?

  • The article has serious bias in the sense that it has not distinguished the cases based on the location of the supplier and recipient as is done in the GST Act.
    For example the POS of services related to organisation of a cultural event where either supplier or recipient is located outside India,is the location where event is held even if the recipient is registered.As per this article POS is the location of the registered recipient which is untrue.

  • Amogya Institute of Fashion Designing in Bangalore, Karnataka, provides fashion designing training to Mohan Apparel, registered in Chennai, Tamil Nadu. The training is conducted at Amogya Institute’s premises.
    Location of supplier: Bangalore, Karnataka
    Place of supply: Location of Mohan Apparel is Chennai, Tamil Nadu.
    This is an interstate supply and the tax applicable is IGST.

    Assuming, Mohan Apparel’s HO is in Mumbai (Maharashtra) and Purchase Order is issued from Mumbai for giving training to their Chennai branch (Tamil Nadu) office personnel and the training is conducted in Bangalore (Karnataka). All are registered under GST.

    Which state will be the place of supply?

  • SIR, THANK U FOR GIVING CONTINUE GUIDE TO US.I HAVE SOME QUESTION IF U PL.GUIDE.
    WE R MFG.WE PURCHASE MATERIALS FROM DIFF.PRTIES.MAY BE SOME PARTY NOT REGISTERED IN GST. SO WHAT TO DO AT THAT TIME PURCHASE MATERIAL FROM THEM WHICH IS NEEDED IN OUR MFG.CAN THEY CHARGE CGST + SGST ( I THINK THEY CAN’T) .IF NOT CHARGED THEN HOW CAN WE SHOW IN R-2? LIKE THAT SUPPOSE WE SALE TO OTHER WHO R NOT REGISTERED IN GST. THEN CAN WE AVIL GST IN R-1 ? HOW TO SHOW IN R-1?

    WHEN WILL U GIVE THE DEMO IN OUR TALLY SO THAT WE CAN READY TO DO SO.

    KETAN PANDYA

    • On purchase from unregistered dealers, the recipient has to pay tax on reverse charge and issue a tax invoice. The same can be shown in GSTR-2. For sale to unregistered dealers, tax invoice has to be issued, which can be uploaded in GSTR-1.

  • For #2 if the bill is raised against the charted accountant firm instead of the person who is availing the service then it will be inter state service which attracts IGST. is it right? Pls clarify.

    • For this, the place of supply is the location where the service is provided, regardless of whether the recipient is registered or unregistered. Hence, it will still be CGST + SGST.

  • What about travels and tours business?? If my company from Kolkata booking a ticket of a client from Mumbai to Delhi. What would be the place of supply??

  • The query is There is an event manager based in goa, who organises events like sales meet etc. It undertakes the full consolidated contract wherein he provides hotel accomodation, banquets, lunch dinner etc to the attendees. It provides services to clients generally based in Mumbai, Delhi and Ahemdabad. The query is whether the he will have to charge IGST to clients on the total value which will include accomodation in hotels etc. and can he in turn take ITC for the same against his invoice of IGST to his client. Kindly clarify

    • Yes, on the event management service, he can charge IGST if the recipients are registered. However, the hotel in Goa will charge CGST + SGST for its services. You can utilise the input credit of CGST + SGST to set-off your IGST liability.

  • is this also relevant for AMC services for chillers, if my customer is in Mumbai ( assuming he is registered), and my registered place is in Delhi, which tax will be applicable, will this transaction be inter-state or intra -state, accordingly can i bill him on IGST or i have to take registration in Mumbai if i am not registered, also if i avail some third party services in relating to this AMC, what tax will my vendor charge and do i get credit for that, how is this different if the contract type is work contract.

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