Determining Place of Supply for Unique Services under GST
This article elucidates the rules for determining the place of supply for specific services under GST in India. It distinguishes these performance-based services from general goods and immovable property services. Through various examples, the guide illustrates how to ascertain the correct place of supply for restaurant, health, training, and event management services, both within India and internationally. Understanding these distinctions is crucial for applying the correct GST type (CGST+SGST or IGST).
Previous discussions have explored the place of supply for goods, general services, and services connected to immovable property. This article will focus on determining the place of supply for particular performance-based services, including those related to restaurants, training, and events, supported by various illustrations.
Supply at Restaurants
Example 1- Restaurant Raj Hotels in Mumbai, Maharashtra, provides catering services to Polaris Ltd. (registered in Gujarat) for their annual sales event in Mumbai. Supply of service: Catering Place of supply: Maharashtra GST: CGST + SGST
Example 2- Personal GroomingAjay, a chartered accountant (Karnataka) has been advised to take an ayurvedic treatment at Om Ayurvedic Centre in Kerala. Supply of service: Health by Ayurvedic Centre Place of supply: Kerala GST: CGST + SGST
Place of Supply for Training
If the immovable property (boat/vessel) is located in more than one State then all the states will be considered as place of supplies in proportion to the value of services. The states will share GST in proportion to the value of services.
Example 1- Admission to amusement parksA person in Karnataka buys admission tickets for Nicco Park (amusement park) in Kolkata, West Bengal from the Nicco Park organizers. Supply of service: Admission Place of supply: West Bengal (Location of the park) GST: CGST+SGST
Example 2- Events managed for registered personsYardy Event Managers (Mumbai) is hired by Akash Electronics (Gujarat) to organize their annual sales event in Mumbai. Supply of service: Event management Place of supply: Gujarat (since the recipient is a registered person, location of recipient is the place of supply) GST: IGST
Example 3- Events managed for unregistered personsYardy Event Managers (Mumbai) is hired by Ms. Malini (based in Bangalore) to manage her sister’s wedding (held in Mumbai). Supply of service: Event management Place of supply: Mumbai (since the recipient is unregistered person, location of event is the place of supply) GST: CGST+SGST
Example 4- Events managed outside India for registered personsYardy Event Managers (Mumbai) is hired by Akash Electronics (Gujarat) to organize their annual business collaboration event in Singapore. Supply of service: Event management Place of supply: Gujarat (since the recipient is a registered person, location of recipient is the place of supply). Location of event is immaterial. GST: IGST
Example 5- Events managed outside India for unregistered personsJack and Jones Event Managers (Mumbai) is hired by Ms. Malini (based in Bangalore) to manage her sister’s wedding (held in Dubai). Supply of service: Event management Place of supply: Bangalore (since the location of event is outside India, the location of recipient is the place of supply) GST: IGST