Rule 9 of IGST Rules 2017: Proportion of Value of Services in Specific Cases

Provisions under Rule 9 of the Integrated Goods and Services Tax (IGST) Rules, 2017 relating to determining the proportion of value attributable to different States or Union territories in specific cases of supply of services, applicable w.e.f. 01/01/2019, are as under:

IGST Rule 9: Determining the Proportion of Value Attributable to Different States or UTs in Specific Cases of Supply of Services

The proportion of value attributable to different States or Union territories, under subsection (7) of section 13 of the said Act, in the case of supply of services by way of admission to, or organisation of a cultural, artistic, sporting, scientific, educational or entertainment event, or a celebration, conference, fair, exhibition or similar events, and of services ancillary to such admission or organisation, where the location of the supplier of services or the location of the recipient of services is outside India, and where such services are provided in more than one State or Union territory, in the absence of any contract or agreement between the supplier of service and recipient of services for separately collecting or determining the value of the services in each such State or Union territory, as the case maybe, shall be determined by applying the provisions of rule 5, mutatis mutandis.

Amendments in History:

NA

Commentary on Rule 9 of the IGST Rules, 2017

Rule 9 of the Integrated Goods and Services Tax (IGST) Rules, 2017, provides guidelines for determining the proportion of value attributable to different States or Union territories in specific cases of supply of services. This rule is applicable from January 1, 2019.

The rule specifically deals with the supply of services by way of admission to, or organization of events like cultural, artistic, sporting, scientific, educational or entertainment events, as well as celebrations, conferences, fairs, exhibitions and similar events. It also applies to services ancillary to such admission or organization. The rule comes into play when:

i) The location of the supplier of services or the location of the recipient of services is outside India;

ii) The services are provided in more than one State or Union territory; and

iii) There is no contract or agreement between the supplier of service and recipient of services to separately collect or determine the value of the services in each State or Union territory.

In such cases, the proportion of value attributable to different States or Union territories must be determined by applying the provisions of Rule 5, mutatis mutandis (i.e., with necessary modifications). Rule 5 provides guidelines for determining the value of taxable services in situations where the value is not ascertainable.

In summary, Rule 9 of the IGST Rules, 2017, addresses a specific situation where the supply of services in the form of events and ancillary services takes place across multiple States or Union territories and either the supplier or recipient is located outside India. The rule instructs that the provisions of Rule 5 should be applied with necessary modifications to determine the proportion of value attributable to different States or Union territories.

—–

Note: The Integrated Goods and Services Tax (IGST) Rules 2017 were initially notified by CBEC vide Integrated Tax Notification 4/2017 dated 28/06/2017 (Rule 1 & 2). Subsequently, IGST Rule 3 has been inserted vide Notification 12/2017 and IGST Rules 4 to 9 have been inserted vide Notification 4/2018. Information on this page is a Rule-wise compilation of Amendments made by various Notifications issued by CBIC from time to time, with best possible efforts for accuracy. In any case, E&OE. For official/ updated information, please visit CBIC website.