Place of Supply of Services under Model GST Act, 2016
CA Ankit Gulgulia (Jain) |Ā ankitgulgulia@gmail.com

16.Place of supply of services

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(1) The provisions of this section shall apply to determine the place of supply of services.

(2) The place of supply of all services, except those services specified in sub-sections (4), (5), (6), (7), (8), (9), (10), (11), (12) and (13), made to a registered person shall be theĀ location of the service receiver.

(3) The place of supply of all services, except those services specified in sub-sections (4), (5), (6), (7), (8), (9), (10), (11), (12) and (13), made to anyĀ person other than a registered person shall be the location of the service provider.

(4) The place of supply of services,-

(a) inĀ  relationĀ  toĀ  anĀ  immovableĀ  property,Ā  includingĀ  servicesĀ  providedĀ  by architects,interior decorators,Ā  surveyors, engineers andĀ  other related experts or estate agents, any service provided by way ofĀ Ā  grant of rights toĀ  useĀ  immovableĀ  propertyĀ  orĀ  forĀ  carryingĀ  outĀ  orĀ  co-ordinationĀ  of construction work, or

(b) byĀ  wayĀ  ofĀ  lodgingĀ Ā Ā Ā  accommodationĀ  byĀ  aĀ  hotel,Ā  inn,Ā  guestĀ  house, homestay, club or campsite, by whatever name called and including a house boat or any other vessel, or

(c) by way of accommodation in any immovable property for organizing any marriage or reception or matters related therewith, official, social, cultural, religious or business function including services provided in relation to such function at such property,Ā shall be the location at which the immovable property or boat or vessel is located or intended to be located.Ā 

Explanation: Where the immovable property or boat or vessel is located in more than one State, the supply of service shall be treated as made in each of the States in proportion to the value for services separately collected or determined, in terms of the contract or agreement entered into in this regard or, in the absence of such contract or agreement, on such other reasonable basis as may be prescribed in this behalf.

(5) are actually performed.The place of supply of restaurant and catering services and services in relation to training, performance appraisal, personal grooming, fitness, beauty treatment, health services including cosmetic and plastic surgery shall be the location where the services place of supply of services provided by way ofā€”

admissionĀ  toĀ Ā Ā  aĀ  cultural,Ā  artistic,Ā  sporting,Ā  scientific,Ā  educational,Ā  or entertainmentĀ Ā  event or amusement park or any other place, or organizationĀ  ofĀ  aĀ  cultural,Ā  artistic,Ā  sporting,Ā  scientific,Ā  educationalĀ  or entertainmentĀ  eventĀ  includingĀ  supplyĀ  ofĀ  serviceĀ  inĀ  relationĀ  to a conference, fair, exhibition, celebration or similar events, or services ancillary to such admission to or organization of any of the above events or services, or

(d) assigning of sponsorship of any of the above events,Ā shall be the place where the event is actually held.Ā 

Explanation: Where the event is held in more than one State and a consolidated amount is charged for supply of services relating to such event, the place of supply of such services shall be taken as being in the each of the States in proportion to the value of services so provided in each State as ascertained from the terms of the contract or agreement entered into in this regard or, in absence of such contract or agreement, on such other reasonable basis as may be prescribed in this behalf.

(7) mail or courier to,

(a) The place of supply of services by way of transportation of goods, including by a registered person,Ā shall be the location of such service receiver;Ā 

(b) a personother than a registered person, shall be the location at which such goods are handed over for their transportation.

(8) The place of supply of passenger transportation service shall be the place where the passenger embarks on the conveyance for a continuous journey.

Provided that where the right to passage is given for future use and the point of embarkation is not known at the time of issue of right to passage, the place of supply of such service shall be determined in the manner specified in sub-sections (2) or (3), as the case may be.

Explanation: For the purposes of this sub-section, the return journey shall be treated as a separate journey even if the right to passage for onward and return journey is issued at the same time.

(9) The place of supply of services on board a conveyance such as vessel, aircraft, train or motor vehicle, shall be the location of the first scheduled point of departure of that conveyance for the journey.

(10) TheĀ  placeĀ  ofĀ  supplyĀ  ofĀ  telecommunicationĀ  services including data transfer, broadcasting, cable and direct to home television services to any person shallā€” (a) in case of services by way of fixed telecommunication line, leased circuits, internet leased circuit, cable or dish antenna, be the location where the telecommunication line, leased circuit or cable connection or dish antenna is installed for receipt of services;

(b) in case of mobile connection for telecommunication and internet services providedĀ  onĀ  post-paidĀ  basis,Ā  beĀ  theĀ  locationĀ  ofĀ  billingĀ  addressĀ  ofĀ  the service receiver on record of the service provider;

(c) inĀ  casesĀ  whereĀ  mobileĀ  connectionĀ  forĀ  telecommunicationĀ  andĀ  internet serviceĀ  areĀ  providedĀ  onĀ  pre-paymentĀ  throughĀ  aĀ  voucherĀ  orĀ  anyĀ  other means,Ā  beĀ  theĀ  locationĀ  whereĀ  suchĀ  pre-paymentĀ  isĀ  receivedĀ  orĀ  such vouchers are sold:

Provided that if such pre-paid service is availed or the recharge is made through internetĀ  bankingĀ  orĀ  otherĀ  electronicĀ  modeĀ  ofĀ  payment,Ā  theĀ  locationĀ  ofĀ  theĀ  service receiver on record of the service provider shall be the place of supply of such service.

(11)Ā Ā  The place of supply of banking and other financial services including stock broking services to any person shall be the location of the service receiver on the records of the service provider:

Provided that if the service is not linked to the account of the receiver, the place of supply shall be location of the service provider.

(12) The place of supply of insurance services shall:

(a) to a registered person, be the location of the service receiver; and

(b) to a person other than a registered person, be the location of the service receiver on the records of the service provider.

Provided that for all general insurance services related to an immovable property, the place of supply of services shall be the location of the property.

(13) The place of supply of advertisement services to the Central Government, a State Government, a statutory body or a local authority meant for identifiable States, shall be taken as located in each of such States and the value of such supplies specific to each StateĀ  shallĀ  beĀ  inĀ  proportionĀ  toĀ  amountĀ  attributableĀ  toĀ  serviceĀ  providedĀ  byĀ  wayĀ  of dissemination in the respective States as may be determined in terms of the contract or agreement entered into in this regard or, in the absence of such contract or agreement, on such other reasonable basis as may be prescribed in this behalf.
Source:- Sub-committee II Report on Model GST Act, 2016

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