3 day clause by clause discussions on GST Inter state transactions, - - PowerPoint PPT Presentation

3 day clause by clause discussions on GST

Inter state transactions, Place of supply of services and Import of services

Bangalore May 27, 2017

Background to GST

GST Framework

Single Taxable Event “Supply of goods & Services” Dual GST for Centre and States, IGST on inter-state transactions

Destination Based Tax -[Shift from ‘Origin’ based Tax]

Levy of Tax

Levy of Tax

Intra State Supply CGST SGST Inter State Supply IGST

Time and place of supply rules for goods and services are key in determining the levy

Levy of Tax

On goods imported into India – Levied and collected as per customs legislation On all interstate supplies not exceeding 40 percent Specified category

• f supply of goods
• r services payable

as reverse charge as may be notified

IGST

Where supplier is not registered – payable by recipient Power to exempt by Notification Electronic commerce

• perator as may

be notified

Place of supply rules

8

Place of supply - Relevance

Location of Supplier of Service/goods Place of Supply (PoS) Location of Supplier of Service/goods Place of Supply (PoS)

Intra State Supply Inter State Supply Same state/union territory

Different states, union territories, one state and a union territory

SGST + CGST IGST of PoS State/Union territory

Place of supply rules - Goods

Place of supply of goods

Where supply involves movement of goods, whether by the supplier or the recipient or any other person

Location

• f

goods when the movement of goods terminates for delivery to the recipient

Where the supply does not involve movement of goods

Place of supply shall be the location

• f goods at the time of the delivery

to the recipient

Where goods are assembled or installed at site

Place of supply shall be the place of installation or assembly of goods

Place of Supply of goods- Section 10 of IGST Act

Place of supply of goods

Where goods are supplied on board a conveyance (such as a vessel, an aircraft, a train etc.) Place of supply shall be the location at which goods are taken on board

Place of Supply of goods- Section 10 of IGST Act

Where the goods are delivered by the supplier to a recipient or any other person,

• n the direction of a third person, whether

acting as agent or otherwise, before or during the movement of goods, either by way of transfer of documents of title to the goods or otherwise

In such a scenario, it shall be deemed that the said third person has received the goods. Place

• f

supply of such goods shall be the principal place of business of such person.

Place of supply of goods – Import/Export

Goods Imported into India Location of Importer Goods exported from India Location outside India Place of Supply of goods- Section 11 of IGST Act

Place of supply rules - Services

Place of supply of service

Section 12 of IGST (Slides 15 to 20) Location of Supplier

• r Location of

recipient in India

Supply rules

Location of Supplier or Location of recipient is

• utside India

Section 13 of IGST (Slides 21 to 25)

Location of supplier or location of recipient is in India

16

Location of Supplier of Service

Location of Supplier of Service

Supply from a place of business for which registration has been

• btained

Location of such registered place of business

Supply from unregistered place say Fixed establishment Location of such fixed establishment Supply from more than

• ne establishment

whether registered or not Location of establishment most directly concerned with provision of supply Absence of such places Location of usual place

• f residence of the

supplier

Place of supply of service - Location

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 By way of lodging accommodation by hotel, inn, guest house, club or campsite, by whatever name called and including a house boat or any other vessel By way of accommodation in any immovable property for

• rganizing any marriage,
• fficial, social, cultural,

religious or business function including services provided in relation to such function at such property Any services ancillary to the services mentioned earlier

Place of supply of services shall be the location at which the immovable property or where boat or where vessel is located

where no contract then, on such other reasonable basis as may be prescribed In case the immovable property or boat or vessel is located in more than

• ne State

treated as made in each of the States in proportion to the value for services separately collected or determined, in terms of the contract

supply of service shall be

Place of supply of service -Performance

Place of supply shall be the location where these services are actually performed services of training and performance appraisal provided to registered person Place of supply shall be the location of such person. Services of training and performance appraisal provided to a person who is not registered Place of supply shall be the location where services are actually performed. Where services are provided by way of admission to a cultural, artistic, sporting, scientific, educational, or entertainment event

• r amusement park or any other place and

services ancillary thereto Place of supply shall be the place where the event is actually held or where the park or such other place is located.

Place of supply

In case of restaurant and catering services, personal grooming, fitness, beauty treatment, health services including cosmetic and plastic surgery

Place of supply of service

Place of supply shall be the location of the recipient of service as stated in the records

• f the supplier of service

Insurance Services Banking and other financial services including stock broking services to any person*

* In case of banking and other financial services, if the location of the recipient of services is not on

the records of the supplier, the place of supply shall be location of the supplier of service Place of supply shall be the location of such person Place of supply shall be the location of the recipient

• f service on the records
• f the supplier of service

To a registered person To a person other than a registered person

Place of supply of service

Then the location

• f

such person Then:-

• the

location

• f

the recipient where the address on record exists, and

• the location of the supplier of

services in other cases In case the services are not covered in the categories discussed in the foregoing slides then, if the service are provided:- To a registered person To a person

• ther than a

registered person

Default Rule- Place of Supply of Service

Location of supplier or location of recipient is

• utside India

Place of supply of service -Performance

Location where the services are actually performed

Services supplier in respect of goods which are physically required to be made available by the recipient to the supplier

• f services. Exceptions provided

services supplied to an individual, represented either as the recipient

• f services or a person acting on behalf of the recipient, which require

the physical presence of the recipient or the person acting on his behalf, with the supplier for the supply of services.

Place of supply of service - Location

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 By way of lodging accommodation by hotel, inn, guest house, club or campsite, by whatever name called By way of accommodation in any immovable property for

• rganizing any marriage,
• fficial, social, cultural,

religious or business function including services provided in relation to such function at such property

Place of supply of services shall be the location at which the immovable property or where boat or where vessel is located

where no contract then, on such other reasonable basis as may be prescribed In case the immovable property or boat or vessel is located in more than

• ne State

treated as made in each of the States in proportion to the value for services separately collected or determined, in terms of the contract

supply of service shall be

Place of supply of service -Exception

Location of the supplier

Services supplied by a banking company, or a financial institution or a non-banking financial company, to account holders Intermediary services Services consisting of hiring of means of transport including yatchs but excluding aircrafts and vessels, upto a period of one month.

Place of supply of service -Performance

Place of destination of such goods Passenger transportation services Place where the passenger embarks

• n the conveyance for a continuous

journey Services on board a conveyance during the course of a passenger transport operation, including services intended to be wholly or substantially consumed while on board First scheduled point of departure of that conveyance for the journey Online information and database access or retrieval services Location of recipient of services

Place of supply

Services of transportation of goods, other than by way of mail or courier

Zero rated supplies

Zero rated supplies

Zero rated supply

Export of goods or services or both Supply of goods or services or both to Special Economic Zone developer

• r Special Economic Zone unit
• Credit
• f

input tax may be availed for making zero rated supplies, notwithstanding that such supply may be an exempt supply

Under bond or letter of understanding subject to conditions, safeguards and procedures

Subject to conditions, safeguards and procedures, on payment of integrated tax and claim refund of such tax paid

• n goods or services or both supplied

A registered person making zero rated supply shall be eligible to claim refund under either of the

• ptions :

Thank you 

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although I endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No

• ne should act on such information without appropriate professional advice after a thorough examination of the particular situation.