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.
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Nature of Transaction |
Place of supply of goods |
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Services provided to the registered person |
Location of the person |
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Provided to someone other than the registered person |
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E.g. Marriage, reception or related |
Where the immovable property is located or intended to be located |
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Restaurant and catering, fitness, beauty treatment, health, and plastic surgery |
Location where the services are actually performed |
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Services in relation to training and performance appraisal |
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Admission to any event E.g. Cultural, educational, entertainment, artistic, sports etc. |
Location where the event is actually held |
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Organizing of cultural, artistic, educational, scientific events, including services in relation to conferences, fairs, exhibitions, and celebrations |
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Services in relation to training and performance appraisal |
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Admission to any event E.g., Cultural, educational, entertainment, artistic, sport etc. |
Location where the event is actually held |
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Organizing cultural, artistic, educational, scientific events, including services in relation to conference, fair, exhibition, and celebration |
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Transportation of goods including mail or courier |
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Passenger transportation services |
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Services onboard a vessel, aircraft, motor car, and train |
Location of the first scheduled point of departure for the journey |
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Banking and other financial services, including stock broking services |
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Insurance services |
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Advertisement services to:
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Location where the services are provided If the consolidated price is more than one state on a proportionate basis |
