GST INDIA DAILY

PLACE OF SUPPLY SERIES – PART 5

Last week we have gone-through overview of Place of Supply under GST. Read Part 6 of Place of Supply under GST, Please go through. Part Link:

https://wordpress.com/block-editor/post/gstindiadaily.wordpress.com/563

DETERMINATION OF PLACE OF SUPPLY OF SERVICES

In the last article, we saw how to find place of supply of few specified services. Let’s continue with more services

f)         Transportation of Goods:-

The services provided by the transportation of goods which includes mail and courier services.

Determination of Place of Supply:

          If the service recipient is registered, place of supply is the location of the recipient

          If the service recipient is unregistered, place of supply shall be the location where the goods are handed over for the transportation.

Example-

1.  MT Ltd registered at Bangalore (Karnataka) hires Vedant & Co, a goods transport agency to transport 1000 Laptops from Mysore to Goa. The place of supply is Bangalore (Karnataka) since the recipient is registered.
2. Ms. Prashitha moves from Delhi to Mumbai (Maharashtra). She hires Doc Packers & Movers for transporting her household goods. The place of supply for the above transaction is Delhi since the goods are handed for transfer at Delhi.

g)  Transportation of Passengers:-

This provision explains the place of supply of transportation of passesngers.

Determination of Place of Supply:

          If the service recipient is registered, place of supply is the location of the recipient

          If the service recipient is unregistered, place of supply shall be the location where the passenger embarks on the conveyance of continuous journey.

If the service recipient is unregistered and the place of embarkment is not known, place of supply shall be

• the location of recipient if address is available on record.
• if the address is not available, location of supplier of service.

Example-

1. Mr. Rajendran who is a registered trader from Lucknow (UttarPradesh) travels on an official business from Delhi to Rajasthan. The place of  supply shall be Uttarpradesh since the recipient is registered
2. Ms.Vanitha travels for vacation from Chennai (TamilNadu) to  Jaipur (Rajasthan). She books the ticket for to and fro from Chennai airport itself. There are two transactions involved in this.
   1. From Chennai-Jaipur-> Place of supply is Chennai since she starts from there
   1. From Jaipur-Chennai -> Place of supply shall be Rajasthan since she embarks from there. The place where the tickets are purchased are irrelevant.
3. Vaigai travels ltd, a registered travel agency from Madurai (Tamilnadu) offers a pass to customers to travel anywhere in India for a specified money. Mr. Badri, an unregistered person from Chennai purchased such pass and travelled from Chennai (Tamilnadu) to Ahmedabad (Gujarat). In this case, the place of embarkment is not known and the address of the recipient is not recorded in any of the document. Place of supply shall be the location of the supplier which is Madurai(TamilNadu).

h)        On Board a Conveyance:-

This section deals with the principles regarding the place of supply of services on board a conveyance. This conveyance includes a vessel, an aircraft, a train or a motor vehicle.

Determination of Place of Supply:

The place of supply in this case shall be the location of the first scheduled point of departure of that conveyance for the journey.

Example-

AirIndia flight is registered at all states and union terrirories. A flight starts it journey from Chennai. It stops at Goa – Mumbai (Maharashtra) – Ahmedabad (Gujarat).  It provides food services on board at Mumbai. The place of supply shall be Chennai(Tamilnadu) since it is the first scheduled point of departure of that conveyance for the journey.

STAY TUNE TO THE RIDE OF GST WAVE

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MANIMARAN KATHIRESAN ( ON BEHALF OF GST INDIA DAILY TEAM)