UNDERSTANDING PLACE OF SUPPLY-1

Determining the Place of Supply of goods or services is very important as it determines the nature of the tax to be paid. In case, when the location of the supplier and place of supply are in the same state, CGST and SGST will be levied, whereas if the place of supply is in a different state, then IGST will be levied. Which tax is to be levied (IGST or CGST and SGST/UTGST) depends on whether a particular transaction is an Inter-state supply or Intra-state supply. Hence, every transaction has to go through the test of provisions relating to the place of supply in order to determine which tax is to be levied.

Nature of Transaction	Place of supply of goods
Services provided to the registered person	Location of the person
Provided to someone other than the registered person	Location of the recipient where the address on record exists Other cases-location of the supplier
Services in relation to immovable property including ancillary services Lodging accommodation by hotel, inn, club, guest house etc. Accommodation of any immovable property for organizing any event E.g. Marriage, reception or related	Where the immovable property is located or intended to be located
Restaurant and catering, fitness, beauty treatment, health, and plastic surgery	Location where the services are actually performed
Services in relation to training and performance appraisal	Registered person- location of such a person Other than the registered person- where services are actually performed
Admission to any event E.g. Cultural, educational, entertainment, artistic, sports etc.	Location where the event is actually held
Organizing of cultural, artistic, educational, scientific events, including services in relation to conferences, fairs, exhibitions, and celebrations	Registered person- location of such a person Other than the registered person- where services are actually performed When the event is held in more than one state for the consolidated price, it will be based on the proportion of the value of services provided in the state
Services in relation to training and performance appraisal	Registered person-location of such a person Other than the registered person- where services are actually performed
Admission to any event E.g., Cultural, educational, entertainment, artistic, sport etc.	Location where the event is actually held
Organizing cultural, artistic, educational, scientific events, including services in relation to conference, fair, exhibition, and celebration	Registered person-location of such a person Other than the registered person-where services are actually performed When an event is held in more than one state for a consolidated price, based on proportion to the value of services provided in the state
Transportation of goods including mail or courier	Registered person–location of such a person Other than the registered persons – location at which goods are handed over for their transportation
Passenger transportation services	Registered person–location of such a person Other than reg. person place where the passenger embarks on the conveyance for a continuous journey
Services onboard a vessel, aircraft, motor car, and train	Location of the first scheduled point of departure for the journey
Banking and other financial services, including stock broking services	Location of the recipient of service on record of the service provider Service is not linked to the account of the recipient-location of the service provider
Insurance services	Registered person-location of such a person Other than the registered person-location of the recipient of services on record of the supplier
Advertisement services to: Central/State Govt. Statutory body Local authority	Location where the services are provided If the consolidated price is more than one state on a proportionate basis

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