Provisions under Section 11 of the Integrated Goods and Services Tax (IGST) Act, 2017 relating to “Place of supply of goods imported into, or exported from India”, are as under:
Section 11 of IGST Act 2017: Place of Supply of goods imported into, or exported from India (CHAPTER V – PLACE OF SUPPLY OF GOODS OR SERVICES OR BOTH)
The place of supply of goods,–
(a) imported into India shall be the location of the importer;
(b) exported from India shall be the location outside India.
|Note: CBEC notifies 01/07/2017 as the commencement date in respect of Sections 4 to 13, 16 to 19, 21 and 23 to 25 of the IGST Act, 2017, vide Notification 3/2017.|
Commentary on Section 11 of the IGST Act
Section 11 of the Integrated Goods and Services Tax (IGST) Act, 2017, deals with the determination of the place of supply for goods imported into or exported from India. This is an essential aspect of the IGST Act, as the place of supply determines the tax jurisdiction and the applicable tax rate for the transaction. This section consists of two clauses, (a) and (b), which define the place of supply for imported and exported goods respectively. Here’s a commentary on each of these clauses:
(a) Imported goods: When goods are imported into India, the place of supply is deemed to be the location of the importer. The importer is the person who brings goods from outside India into the country and will typically be responsible for paying the applicable taxes. This provision ensures that the tax is levied on the final consumer of the goods, who is the importer in this case. The IGST on imported goods is levied in addition to other customs duties that may be applicable.
(b) Exported goods: When goods are exported from India, the place of supply is deemed to be the location outside India. In other words, the place of supply is considered to be the destination where the goods are sent. This provision is in line with the principle of destination-based taxation, which states that taxes should be levied at the place where the goods or services are consumed. Since exported goods are consumed outside India, they are not subject to IGST in India. The exports of goods and services are considered as “zero-rated supplies” under the IGST Act, which means that exporters can claim a refund of the taxes paid on inputs used in producing the exported goods.
In summary, Section 11 of the IGST Act, 2017, provides guidelines for determining the place of supply for imported and exported goods. These provisions are critical for ensuring that the correct tax jurisdiction and tax rate are applied to these transactions and they support the broader principle of destination-based taxation.
Note: The IGST Act 2017 has been notified vide GOI Notification dated 12/04/2017, which has subsequently been amended through IGST Extension to J&K Act 2017, IGST (Amendment) Act 2018. Finance Act 2019, Finance Act 2020, Finance Act 2021, Finance Act, 2022 and Finance Act, 2023, including various Notifications issued by the Govt./ CBIC from time to time, relating to the commencement dates of various Sections/ Provisions in the respective IGST/ Amendment Acts, wherever required. Information on this page is a Section-wise compilation of the 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.
|CBIC Updates (GST)|
|Index of GST Circulars, Notifications, Press Releases, Orders, etc. issued by CBIC from 2017 and onwards along with Section-wise/ Rule-wise Text of GST Acts/ Rules:|
|CGST: CGST Act/ Definitions, CGST Rules, GST Forms|
|IGST: IGST Act/ Definitions, IGST Rules|
|UTGST: UTGST Act/ Definitions, UTGST Rules|
|GST Circulars (CGST/ IGST/ UTGST): 2023, 2022, 2021, 2020, 2019, 2018, 2017|
|GST Instructions: 2023, 2022, 2021, 2020, 2019, 2018, 2017|
|CGST Notifications: 2023, 2022, 2021, 2020, 2019, 2018, 2017|
|CGST Rate Notifications: 2023, 2022, 2021, 2020, 2019, 2018, 2017|
|IGST Notifications: 2022, 2021, 2020, 2019, 2018, 2017|
|IGST Rate Notifications: 2023, 2022, 2021, 2020, 2019, 2018, 2017|
|UT Tax/ UTGST Notifications: 2022, 2021, 2020, 2019, 2018, 2017|
|UT Tax/ UTGST Rate Notifications: 2023, 2022, 2021, 2020, 2019, 2018, 2017|
|Compensation Cess Notifications: 2023, 2022, 2021, 2020, 2019, 2018, 2017|
|Compensation Cess Rate Notifications: 2023, 2022, 2021, 2020, 2019, 2018, 2017|
|CBIC Orders (CGST/ IGST/ UTGST): 2023, 2022, 2021, 2020, 2019, 2018, 2017|
|CBIC Press Releases: 2020, 2019, 2018, 2017|
|Note: For Official/ updated copy, please visit the CBIC website.|