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 Destination Event Based Tax -[Shift “Supply of goods from ‘Origin’ & Services” based Tax] Dual GST for Centre and States, IGST on inter-state transactions

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 On all imported into interstate India – supplies not Levied and exceeding 40 collected as percent per customs legislation Specified category Where supplier of supply of goods is not registered IGST or services payable – payable by as reverse charge recipient as may be notified Electronic Power to commerce exempt by operator as may Notification be notified

Place of supply rules

Place of supply - Relevance Intra State Supply Same state/union territory Location of Place of Supplier of Supply (PoS) Service/goods Inter State Supply SGST + Different states, union CGST territories, one state and a union territory Location of Supplier of Place of Supply Service/goods (PoS) IGST of PoS State/Union territory 8

Place of supply rules - Goods

Place of supply of goods Place of Supply of goods- Section 10 of IGST Act Where supply involves movement of Location of goods when the goods, whether by the supplier or the movement of goods terminates for recipient or any other person delivery to the recipient Place of supply shall be the location Where the supply does not involve of goods at the time of the delivery movement of goods to the recipient Where goods are assembled or installed Place of supply shall be the place of at site installation or assembly of goods

Place of supply of goods Place of Supply of goods- Section 10 of IGST Act Place of supply shall be the Where goods are supplied on board a location at which goods are conveyance (such as a vessel, an taken on board aircraft, a train etc.) In such a scenario, it shall be deemed that Where the goods are delivered by the the said third person supplier to a recipient or any other person, has received the on the direction of a third person, whether acting as agent or otherwise, before or goods. Place of during the movement of goods, either by supply of such goods way of transfer of documents of title to the shall be the principal goods or otherwise place of business of such person.

Place of supply of goods – Import/Export Place of Supply of goods- Section 11 of IGST Act Goods Imported into India Location of Importer Goods exported from India Location outside India

Place of supply rules - Services

Place of supply of service Supply rules Location of Supplier Location of Supplier or or Location of Location of recipient is recipient in India outside India Section 12 of IGST Section 13 of IGST (Slides 21 to 25) (Slides 15 to 20)

Location of supplier or location of recipient is in India

Location of Supplier of Service Supply from a place of Location of such business for which registered place of registration has been business obtained Supply from Location of such fixed unregistered place say establishment Fixed establishment Location of Supplier of Service Supply from more than Location of one establishment establishment most whether registered or directly concerned with not provision of supply Location of usual place Absence of such places of residence of the supplier 16

Place of supply of service - Location Place of supply of services shall be the location at which the immovable property or where boat or where vessel is located By way of lodging By way of In relation to an immovable accommodation by accommodation in any property including services hotel, inn, guest immovable property for provided by architects, interior organizing any marriage, house, club or Any services decorators, surveyors, engineers official, social, cultural, ancillary to the and other related experts or campsite, by whatever name religious or business services estate agents, any service called and function including mentioned earlier provided by way of grant of rights including a house services provided in to use immovable property or for relation to such function boat or any other carrying out or co-ordination of at such property construction work vessel treated as made in each of the States in where no contract In case the immovable supply of proportion to the value for services then, on such other property or boat or vessel service shall separately collected or determined, in reasonable basis as is located in more than be terms of the contract may be prescribed one State

Place of supply of service - Performance In case of restaurant and catering services, Place of supply shall be the location personal grooming, fitness, beauty treatment, where these services are actually health services including cosmetic and plastic performed surgery services of training and performance Place of supply shall be the location of Place of supply appraisal provided to registered person such person. Services of training and performance Place of supply shall be the location appraisal provided to a person who is not where services are actually performed. registered Where services are provided by way of Place of supply shall be the place admission to a cultural, artistic, sporting, where the event is actually held or scientific, educational, or entertainment event where the park or such other place is or amusement park or any other place and located. services ancillary thereto

Place of supply of service Place of supply shall be the location of the Banking and other financial services recipient of service as stated in the records including stock broking services to any of the supplier of service person * To a Place of supply shall be registered the location of such person person Insurance Services Place of supply shall be To a person other the location of the recipient than a registered of service on the records person of the supplier of service * 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 of service Default Rule- Place of Supply of Service In case the services are not covered in the categories discussed in the foregoing slides then, if the service are provided:- To a person To a other than a registered registered person person Then:- • the location of the recipient Then the location of where the address on record such person exists, and • the location of the supplier of services in other cases

Location of supplier or location of recipient is outside 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 of services. Exceptions provided services supplied to an individual, represented either as the recipient of 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 Place of supply of services shall be the location at which the immovable property or where boat or where vessel is located In relation to an immovable By way of property including services accommodation in any By way of lodging provided by architects, interior immovable property for accommodation by decorators, surveyors, engineers organizing any marriage, hotel, inn, guest and other related experts or official, social, cultural, house, club or estate agents, any service religious or business campsite, by provided by way of grant of rights function including whatever name to use immovable property or for services provided in called carrying out or co-ordination of relation to such function construction work at such property treated as made in each of the States in where no contract In case the immovable supply of proportion to the value for services then, on such other property or boat or vessel service shall separately collected or determined, in reasonable basis as is located in more than be terms of the contract may be prescribed one State

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.