Section 12 of IGST Act 2017: Place of Supply of Services (Supplier/ Recipient located in India)

Provisions under Section 12 of the Integrated Goods and Services Tax (IGST) Act, 2017 relating to “Place of supply of services where location of supplier and recipient is in India”, are as under:

Section 12 of IGST Act 2017: Place of supply of services where location of supplier and recipient is in India (CHAPTER V PLACE OF SUPPLY OF GOODS OR SERVICES OR BOTH)

(1) The provisions of this section shall apply to determine the place of supply of services where the location of supplier of services and the location of the recipient of services is in India.

(2) The place of supply of services, except the services specified in sub-sections (3) to (14),–

(a) made to a registered person shall be the location of such person;

(b) made to any person other than a registered person shall be,–

(i) the location of the recipient where the address on record exists; and

(ii) the location of the supplier of services in other cases.

(3) The place of supply of services,–

(a) directly in relation to an immovable property, including services provided by architects, interior decorators, surveyors, engineers and other related experts or estate agents, any service provided by way of grant of rights to use immovable property or for carrying out or co-ordination of construction work; or

(b) by way of lodging accommodation by a hotel, inn, guest house, home stay, 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 organising any marriage or reception or matters related thereto, official, social, cultural, religious or business function including services provided in relation to such function at such property; or

(d) any services ancillary to the services referred to in clauses (a), (b) and (c),

shall be the location at which the immovable property or boat or vessel, as the case may be, is located or intended to be located:

Provided that if the location of the immovable property or boat or vessel is located or intended to be located outside India, the place of supply shall be the location of the recipient.

Explanation: Where the immovable property or boat or vessel is located in more than one State or Union territory, the supply of services shall be treated as made in each of the respective States or Union territories, 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 basis as may be prescribed.

(4) The place of supply of restaurant and catering services, personal grooming, fitness, beauty treatment, health service including cosmetic and plastic surgery shall be the location where the services are actually performed.

(5) The place of supply of services in relation to training and performance appraisal to,–

(a) a registered person, shall be the location of such person;

(b) a person other than a registered person, shall be the location where the services are actually performed.

(6) The place of supply of services provided by way of admission to a cultural, artistic, sporting, scientific, educational, entertainment event or amusement park or any other place and services ancillary thereto, shall be the place where the event is actually held or where the park or such other place is located.

(7) The place of supply of services provided by way of,—

(a) organisation of a cultural, artistic, sporting, scientific, educational or entertainment event including supply of services in relation to a conference, fair, exhibition, celebration or similar events; or

(b) services ancillary to organisation of any of the events or services referred to in clause (a), or assigning of sponsorship to such events,–

(i) to a registered person, shall be the location of such person;

(ii) to a person other than a registered person, shall be the place where the event is actually held and if the event is held outside India, the place of supply shall be the location of the recipient.

Explanation: Where the event is held in more than one State or Union territory 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 each of the respective States or Union territories 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 basis as may be prescribed.

(8) The place of supply of services by way of transportation of goods, including by mail or courier to,–

(a) a registered person, shall be the location of such person;

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

Provided that where the transportation of goods is to a place outside India, the place of supply shall be the place of destination of such goods. [Refer Note 1 & 2]

(9) The place of supply of passenger transportation service to,—

(a) a registered person, shall be the location of such person;

(b) a person other than a registered person, 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 accordance with the provisions of sub-section (2).

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.

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

(11) The place of supply of telecommunication services including data transfer, broadcasting, cable and direct to home television services to any person shall,—

(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 provided on post-paid basis, be the location of billing address of the recipient of services on the record of the supplier of services;

(c) in cases where mobile connection for telecommunication, internet service and direct to home television services are provided on pre-payment basis through a voucher or any other means,–

(i) through a selling agent or a re-seller or a distributor of subscriber identity module card or re-charge voucher, be the address of the selling agent or re-seller or distributor as per the record of the supplier at the time of supply; or

(ii) by any person to the final subscriber, be the location where such prepayment is received or such vouchers are sold;

(d) in other cases, be the address of the recipient as per the records of the supplier of services and where such address is not available, the place of supply shall be location of the supplier of services:

Provided that where the address of the recipient as per the records of the supplier of services is not available, the place of supply shall be location of the supplier of services:

Provided further that if such pre-paid service is availed or the recharge is made through internet banking or other electronic mode of payment, the location of the recipient of services on the record of the supplier of services shall be the place of supply of such services.

Explanation: Where the leased circuit is installed in more than one State or Union territory and a consolidated amount is charged for supply of services relating to such circuit, the place of supply of such services shall be taken as being in each of the respective States or Union territories 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 basis as may be prescribed.

(12) The place of supply of banking and other financial services, including stock broking services to any person shall be the location of the recipient of services on the records of the supplier of services:

Provided that if the location of recipient of services is not on the records of the supplier, the place of supply shall be the location of the supplier of services.

(13) The place of supply of insurance services shall,–

(a) to a registered person, be the location of such person;

(b) to a person other than a registered person, be the location of the recipient of services on the records of the supplier of services.

(14) The place of supply of advertisement services to the Central Government, a State Government, a statutory body or a local authority meant for the States or Union territories identified in the contract or agreement shall be taken as being in each of such States or Union territories and the value of such supplies specific to each State or Union territory shall be in proportion to the amount attributable to services provided by way of dissemination in the respective States or Union territories 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 basis as may be prescribed.

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.

Amendments History:

1. Proviso to sub-section (8) inserted vide the IGST (Amendment) Act, 2018 (GOI Notification dated 30/08/2018), followed with CBIC Notification on commencement date of 01/02/2019 vide Integrated Tax Notification 1/2019 dated 29/01/2019. Thus provisions relating to ‘Place of Supply (POS)’ changed from ‘location of recipient’ to ‘destination of goods’, if the transportation is to a place outside India.

2. Proviso to sub-section (8) omitted vide Section 161 of the Finance Act, 2023 in order to clarify the availability of input tax credit and other issues, pending notification on the commencement date.

Section 12 of IGST Act 2017: Place of Supply of Services (Supplier/ Recipient located in India)

Commentary on Section 12 of the IGST Act

Section 12 of the Integrated Goods and Services Tax (IGST) Act, 2017 outlines the provisions to determine the place of supply of services in situations where both the supplier and recipient of services are located in India. This commentary will provide an overview of these provisions:

Section 12(1) of the IGST Act

Section 12(1) states that this section applies when the location of the service provider and recipient are both in India.

Section 12(2) of the IGST Act

Section 12(2) outlines the general rule for determining the place of supply for services, except those specified in subsections (3) to (14). The place of supply depends on whether the recipient is a registered person under GST or not.

Section 12(3) of the IGST Act

Section 12(3) specifies the place of supply for services related to immovable property, lodging, accommodation for events, or ancillary services. The place of supply is determined by the location of the immovable property or vessel.

Section 12(4) of the IGST Act

Section 12(4) establishes the place of supply for services such as restaurant and catering, personal grooming, fitness, beauty treatment, and health services, as the location where the services are performed.

Section 12(5) of the IGST Act

Section 12(5) determines the place of supply for services related to training and performance appraisal based on whether the recipient is a registered person under GST or not.

Section 12(6) of the IGST Act

Section 12(6) sets the place of supply for services provided through admission to events or amusement parks, as the location where the event or park is situated.

Section 12(7) of the IGST Act

Section 12(7) provides rules for determining the place of supply for services related to organizing events or assigning sponsorships, depending on whether the recipient is a registered person under GST or not.

Section 12(8) of the IGST Act

Section 12(8) defines the place of supply for services related to the transportation of goods, including mail or courier services, based on whether the recipient is a registered person under GST or not.

Section 12(9) of the IGST Act

Section 12(9) establishes the place of supply for passenger transportation services, depending on whether the recipient is a registered person under GST or not.

Section 12(10) of the IGST Act

Section 12(10) sets the place of supply for services provided on board a conveyance as the first scheduled point of departure for the journey.

Section 12(11) of the IGST Act

Section 12(11) outlines the place of supply rules for various telecommunication services.

Section 12(12) of the IGST Act

Section 12(12) determines the place of supply for banking and other financial services, including stockbroking services, based on the location of the recipient or the supplier, depending on the records.

Section 12(13) of the IGST Act

Section 12(13) establishes the place of supply for insurance services, depending on whether the recipient is a registered person under GST or not.

Section 12(14) of the IGST Act

Section 12(14) sets the place of supply for advertisement services provided to the Central Government, State Government, statutory bodies, or local authorities, as being in each of the respective States or Union territories.

These provisions help in determining the applicable IGST, CGST, or SGST to be levied on services provided within India.

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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.

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