UNIT-II

TIME OF SPPLY

Meaning of Supply
Supply includes all forms of supply of goods or services or both and includes
agreeing to supply when they are for a consideration and in the course or
furtherance of business.

Section 7(1) of CGST Act, states that for the purpose of CGST Act, the

a) All forms of supply of goods or services or both such as sale, transfer, barter,
exchange, license,
rental, lease or disposal made or agreed to be made for a consideration by a
person in the
course or furtherance of business.
b) Importation of services, for a consideration whether or not in the course or
furtherance of
business.
c) The activities specified in Schedule I, made or agreed to be made without a
consideration and
d) The activities to be treated as supply of goods or supply of services as
referred to in Schedule II.
Different types of Supply
The different types of supplies under GST law is discussed as under
1) Exempt Supply 2) Taxable supply 3) Non-Taxable supply 4) Inward supply
5) Outward supply 6) Principal supply 7) Composite supply 8) Mixed supply

COMPOSITE SUPPLY AND MIXED SUPPLY

For taxability point of view, it is necessary to decide whether it is composite
supply or mixed supply-

I. Composite supply is a supply consisting of two or more taxable supplies of

goods or
service or both or any combination thereof, which are bundle in natural course
and are
supplied in conjunction with each other in the ordinary course of business and
where one of
which is principal supply. For example, when a consumer buys a television set
and he also
15
gets warranty and a maintenance contract with the TV, this supply is a
composite supply. In
this example, supply of TV is the principal, supply, warranty and maintenance
service are
ancillary.

II. Mixed supply is combination of more than one individual supplies of goods
or service or
any combination thereof made in conjunction with each other for a single price,
which can
ordinarily be supplied separately. For example, a shopkeeper selling storage
water bottles
along with refrigerator. Bottles and the refrigerator can easily be priced and sold
separately.

bundle in ordinary course of business.

if separate prices are charged.

Trade practice is also relevant. A vehicle repair shop also supplies spare parts.
However, the long trade
practice is to treat these two supplies separately. Hence, such activity is not
e is not charged.

Tax liability in case of composite and mixed supply [Section 8]

The tax liability on a composite or a mixed supply shall be determined in the
following manner, namely;
(a) A composite supply comprising two or more supplies, one of which is a
principal supply,
shall be treated as a supply of such principal supply; and
(b) A mixed supply comprising two or more supplies shall be treated as a supply
of that
particular supply which attracts the highest rate of tax
TIME OF SUPPLY
Determination of time of supply of goods or services or both is an important
factor to fixvthe point when the liability to charge GST arises. As per section
120) of CGST Acts. The liability to pay CGST/SGST on the goods and services
shall arise at the time of supply of goods and services, as determined in
accordance with provision of CGST Act

16
 Provisions relating to time of supply - Sec. 12 to 14
To determine time of supply of goods or services or both provisions of GST Act
under sec.
12 to 14 are applicable as follows
. TIME OF SUPPLY OF GOODS
If a person supplies taxable goods the time of supply shall be determined in the
following way:

1. Time of normal supply of goods

The time of supply of goods I shall be the earlier of the following dates of
CGST Act:
(a) Date of issue of invoice- The date of issue of invoice by the supplier or the
last date on which he is required before at the time of removal or delivery of
goods to issue the invoice with respect to the supply or
(b) Date of receiving payment- The date on which the supplier receives the
payment with respect to the supply.

The date on which the supplier receives the payment' in respect of supply shall
be-
(i) The date on which the payment is entered in his books of account or
(ii) The date on which the payment is credited to his bank account, whichever is
earlier.
So, time of supply of goods shall be the earliest of the following dates :
(i) The date of issue of invoice by the supplier; or
(ii) The last date on which he is required, to issue the invoice with
respect to the supply, i.e. before or at the time of removal or delivery of goods
to recipient.
(iii) The date on which the supplier receives the payment with respect to the
supply.

The time limit for issue of invoice is as under:

(1) Time limit for issuance of Invoice in case of supplier of goods- A
registered person supplying taxable goods shall Issue invoice before or at the
lime of -
(a) Removal of goods for supply to the recipient, where the supply involves
movement of goods;
(b) Delivery of goods or making available thereof to the recipient, in any other
case.

(2) Issuance of invoice in case of continuous supply of goods- In case of

continuous supply of goods, where successive statements of account or

17
successive payments are involved, the invoice shall be issued before or at the
time each such statement is issued or, as the case may be, each such payment is
received.

(3) Goods sent on approval- Invoice requirements- Where the goods being
sent or taken on approval for sale or return are removed before the supply takes
place,the invoice shall be issued-
(i) Before or at the time of supply, or
(ii) 6 months from the date of removal, whichever is earlier.

2. Time of supply in case of Reverse charge

In case of supplies in respect of which tax is paid or liable to be paid on reverse
charge basis, the time of supply shall be the earliest of the following dates,
namely-
(a) The date of the receipt of goods or
(b) The date of payment as entered in the books of account of the recipient or
the date on which the payment is debited in his bank account, whichever is
earlier, or
(c) The date immediately following thirty days from the date of issue of invoice
or any other document, by whatever name called, in lieu thereof by the supplier.

3. Time of supply in case of vouchers In case of supply of vouchers by a

supplier, the time of supply shall be-
(a) The date of issue of voucher, if the supply Is identifiable that point; Or
(b) The date of redemption of voucher, in all other cases.

4. Where it is not possible to determine the time of supply of Goods Where

it is not possible to determine the time of supply under provisions (4), the time
of supply shall-
(a) In a case where a periodical return has to be filed, be the date on which such
return is to be filed: or
(b) In any other case, be the date on which the tax is paid.

5. Time of supply with regard to an addition in value The time of supply to

the extent it relates to an addition in the value of supply by way of interest, late
fee or penalty for delayed payment of any consideration shall be the date on
which the supplier receives such addition in value.

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 Taxable Value of Supply of Goods
Transaction Value
The value

related and price is the sole consideration. According to Sec. 15 The value of
supply of goods or services or both shall be the transaction value, that is the
price actually paid or payable for the said supply of goods or services or both
where the supplier and the recipient of the supply are not related and the price is
the sole consideration for the supply.

Thus, following are main requirements or transaction value'.

(1) Price actually paid or payable.

(2) Price is for the goods

(3) It includes, in addition to the price charged, any amount the buyer is liable to
pay to assesses in respect of the supply

(4) It includes packing charges weighment, loading freight, insurance, incidental

expenses Supplies incurred before supply or any other amount payable by buyer
to the manufacture.

(5) It does not include GST but includes other taxes.

(6) The transaction value will not be applicable for the purpose of payment of
duty if the recipient and supplier are related.

(7) If the goods are supplier to related person or valuation will be done on the
basis of rules as may be prescribed.

INCLUSIONS OF TRANSACTION VALUE

The following items will be included in transaction value for finding out taxable
value, if the items are not included in transaction value or invoice price
separately charged.

Packing Charge: - Cost of normal packing will be covered, as in most cases; it

is in connection with or in respect of supply. Packing supplied by recipient
should be included, just like cost of any other material supplied. Sometimes
goods are packed in durable and returnable containers e.g. cooking gas packed
in cylinders, cold drinks packed in bottles etc. As we know the gas cylinder or
bottle of cold drink is returned to the manufacturer for refilling 'Returnable'

19
means it should be normally returnable as per agreement or understanding
between buyer and seller. Mere physical capability of returning is not enough.
Manufacturer often takes security deposit from buyer to ensure return of the
container. However, these are not sold to the buyer. deposit is forfeited if the
container is not returned. Cost of such durable and returnable packing will not
be included. Supply of such container may be in 'relation' to supply. However,
the relation is only Remote and indirect. There is no supply of container. It is
transaction of bailment.' There is no direct 'connection' between supply of
durable and returnable containers and the sale. So, in some cases, goods are
packed in returnable packing, like gas cylinder, drums etc. In such case, tax is
payable only on consideration received for the supply.
Thus, it is not required to add amortised cost of durable and returnable packing.

Taxes other than GST: - Any taxes duties, fees and charges levied under any
statute other than the GST Act.
charges are includible in value, if charged separately.
but CGST, SGST, IGST and UTGST are not included.
Thus, SCSI and CGST will be payable on net value only.

Cess. However, other taxes.

(like entertainment tax or some other cess) will be includable if charged
separately in invoice.)

GST Provisions related to Invoices

Tax Invoice (for taxable supply other than exempt)
The provisions related to Invoice to be issued by supplier of goods or services
under GST are given in Section 31 of The CGST Act 2017. According to
it, Tax Invoice is to be issued at the given time:
In case of Supply of Taxable Goods by registered person: on/ before
Removal of Goods, or
Delivery of goods
In case of Supply of Taxable Services by registered person: before/ after
provision of service but within 30 days of date of supply (45 days in certain
cases like supply by banking company, Financial Institutions, NBFC).

The Invoice for Supply of Goods needs to be in Triplicate (for Recipient,

Transporter and Supplier) while the Invoice for Supply for Services needs to be
in Duplicate (for Recipient and Supplier)

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Further the provisos to the Rule deals with certain other conditions for issue of
tax invoice:
1. HSN Code: As per the Rule the Commissioner may be notification specify
following:
1. No. of digits of HSN for goods/ SAC for different class of registered
persons for specified time
2. Class of registered persons who shall not be required to mention HSN/
SAC for specified period
2. In case of Export: An endorsement need to be specified on the Invoice as:
1. SUPPLY MEANT FOR EXPORT ON PAYMENT OF IGST or
2. SUPPLY MEANT FOR EXPORT UNDER BOND OR LETTER OF
UNDERTAKING WITHOUT PAYMENT OF IGST
Also specify the country of destination
Bill of Supply (for exempt supply and composition levy)
As per Section 31(3)(c) a registered person:
supplying exempted goods or services or both or (Exempt includes Nil
rated, Exempt under section 11 and non- taxable)
paying tax under the provisions of section 10 (Composition levy)
shall issue, instead of a tax invoice, a bill of supply containing such particulars
and in such manner as may be prescribed. Below is the sample Bill of Supply as
per Rule 4 of the Tax Invoice, Credit and Debit Notes Rules. The Provisos to
Rule 1 related to HSN Code and Export of Goods/ Services also apply to Bill of
Supply.
The Rule further provides that for non- taxable supplies any other similar
document issued under any other Act shall be deemed as Bill of Supply.

Receipt Voucher (for advance received)

advance
payment
receipt voucher or any other document, containing such particulars as may be
prescribed, evidencing receipt of such payment.
Although taxable event under GST is Supply of Goods or Services, the liability
to pay taxes shall arise at the Time of Supply.

from the customer. That means a tax liability will arise even before issue of
Invoice or making supply to customer and as such taxes will be payable on
advance receipts of payment.
Further as per the rule if the rate of tax is not determinable, the tax shall be paid
@18%. If the nature of supply is not determinable at the time of receipt of

21
advance (whether inter- state or intra state), then the supply shall be treated as
inter- State Supply.

Refund Voucher (for refund of advance)

As per Section 31(3)(e), where, on receipt of advance payment with respect to
any supply of goods or services or both the registered person issues a receipt
voucher, but subsequently no supply is made and no tax invoice is issued in
pursuance thereof, the said registered person may issue to the person who had
refund voucher

the Refund Voucher.

Payment Voucher (for payment of tax under reverse charge)

Tax Invoice by Recipient if supplier is unregistered:- As per Section 31(3)(f)
a registered person who is liable to pay tax under sub-section (3) or sub-section
(4) of section 9 (i.e. under reverse charge) shall issue an invoice in respect of
goods or services or both received by him from the supplier who is not
registered on the date of receipt of goods or services or both. Such Invoice has
been already discussed above under Tax Invoice (for taxable supply other than
exempt) An additional requirement as per the said Rule 1 is that the tax invoice
shall bear signature/ digital signature of recipient/ or his authorized
representative (and not of the supplier).
Payment voucher by Recipient- The Act also prescribes a voucher for the
payment under reverse charge, which is to issued at the time of payment. It is to
be noted that the time of supply in case of reverse charge is earlier of date of
payment or 60 days from issue of invoice. Thus, Payment is voucher is the
evidencing invoice to be reported in GSTR-2 (especially when the recipient do
not issue invoice).

Credit Note- (by supplier for reduction of output tax liability)

As per section 34 (1) Credit Note is to be issued by the supplier in following
cases:
1. Where a tax invoice has been issued and the taxable value or tax charged in
that tax invoice is found to exceed the tax value or tax payable in respect of
such supply, or
2. where the goods supplied are returned by the recipient, or
3. Goods or services or both supplied are found to be deficient.
Such credit note shall be eligible to reduce the output tax liability of the supplier
subject to following conditions (Section 31(2)):
Time limit: not later than September following the end of the f. y. in which
such supply was made, or the date of furnishing of the relevant annual
return, whichever is earlier.

22
 Amendment by recipient: As per the provision to the Section no reduction
in output tax liability of the supplier shall be permitted, if the incidence of
tax and interest on such supply has been passed on to any other person.

Debit Note- (by supplier for increase of output tax liability)

As per section 34 (3) Debit Note is to be issued by the supplier in following
cases where a tax invoice has been issued and the taxable value or tax
charged in that tax invoice is found to be less than the tax value or tax payable
in respect of such supply. Time Limit is same as in case of Credit Note. No
other condition is specifies for Debit Note.

Meaning of GST Rates

GST rates refer to the percentage rates of tax imposed on the sale of goods or
services under the CGST, SGST and IGST Acts. A business registered under
the GST law must issue invoices with GST amounts charged on the value of
supply. The GST rates in CGST and SGST (For intra-state transactions) are
approximately the same. Whereas, the GST rate in the case of IGST (For inter-
state transactions) is approximately the sum total of CGST and SGST rate.

Types of GST Rates and GST Rate structure in India

The primary GST slabs for any regular taxpayers are presently pegged at 0%
(nil-rated), 5%, 12%, 18% & 28%. There are a few lesser-used GST rates
such as 3% and 0.25%.

Also, the composition taxable persons must pay GST at lower or nominal rates
such as 1.5% or 5% or 6% on their turnover. There is a concept of TDS and
TCS under GST as well, whose rates are 2% and 1% respectively.

These are the total GST rate of IGST for interstate supply or the addition of
both CGST and SGST for intrastate supply. The GST rates shall be multiplied

23
by the assessable value of the supply to arrive at the GST amounts in a tax
invoice.

Further, the GST law levies cess in addition to the above GST rates on the sale
of some items such as cigarettes, tobacco, aerated water, petrol, and motor
vehicles, rates widely varying from 1% to 204%.

The GST rate structure for some of the commonly-used consumable products is
given in the below table. For more items, type in the item you wish to know the
GST rate of by visiting our HSN code & GST rates finder.

Place of Supply of Goods in GST

Place of Supply of Goods in GST: While determining the levy of taxes based
on Place of Supply, two things are considered namely:
1. Location of Supplier: It is the registered place of business of the supplier.
2. Place of Supply: It is the registered place of business of the recipient

Place of supply of Goods: As per section 10 of the CGST Act, 2017 place of
supply of goods other than supply of goods imported into, or exported from
India, shall be as under:

Supply involves movement of goods [Sec.10(1)(a) of the IGST Act, 2017]

Nature of supply: - Supply involves movement of goods whether by supplier

or recipient or by any other person.
Place of supply of goods: - Location of the goods at the time at which the
movement of goods terminates for delivery to the recipient.

The supplier delivers goods to a recipient or any other person on the

direction of a third person by way of transfer of documents of title to the
goods or otherwise [Section 10(1)(b) of the IGST Act 2017]

Nature of supply: - Goods are delivered by the supplier to a recipient or any

other person on the direction of a third person, whether acting as an agent or
otherwise, before or during movement of goods by way of transfer of
documents of title to the goods or otherwise.

24
Place of supply of goods: - It shall be deemed that the said third person has
received the goods and the Place of Supply of such goods shall be the principal
place of business of such person.

Supply does not involve movement of goods [Sec.10(1)(c) of the IGST Act,
2017]

Nature of supply: - Where the supply does not involve movement of goods,
whether by the supplier or the recipient.

Place of supply of goods: - Location of such goods at the time of the delivery
to the recipient

Goods are assembled or installed at Site [Sec 10(1)(d) of IGST Act, 2017]:

Nature of supply: - Where the goods are assembled or installed at site.

Place of supply of goods: - Place of such installation or assembly.

Goods are supplied on board a conveyance [Section 10(1)(e) of IGST Act,

2017]
Nature of supply: - Where the goods are supplied on board a conveyance
including a vessel, an aircraft, a train or a motor vehicle.
Place of supply of goods: - Location at which such goods are taken on board.

Place of Supply of goods cannot be determined [Section 10(2) of the IGST

Act, 2017]
Nature of supply: - Anything not covered under sub-section (a) to (e) of
Section 10(1) of the IGST Act, 2017
Place of supply of goods: - Determined in such manner as may be prescribed
(i.e. as recommended by GST Council)

Place of supply of goods imported into or exported from India

[Sec. 11 of the IGST Act, 2017]

Nature of supply: - Import into India

Place of supply of goods: - Location of the importer
Nature of supply: - Export from India
Place of supply of goods: - Location of outside India

25
IGST Levy on supply of good: Supply of goods in the course of inter-State

the place of supply are

services

The Place of Supply of Services where location of supplier and recipient is

in India [Sec. 12 of IGST Act, 2017]: To know the Place of Supply for
Services the following two concepts are very important (Section 12(1) of the
IGST Act, 2017):
1. Location of the recipient of services.
2. Location of the supplier of services.

1. Location of the recipient of services.

Sec 2(14) of IGST Act, the definition of location of recipient of service divided
into 4 sub clauses:
Recipient of service: -
(a) Services received at place of business where registration is obtained.
Location of the recipient of service: -Location of such place of business

Recipient of service: - (b) Services received at fixed establishment

Location of the recipient of service: - Location of such fixed establishment

Recipient of service: - (c) Services received at more than one establishment

Location of the recipient of service: - The location of establishment most
directly concerned with the receipt of the supply

Recipient of service: - (d) Services received at other than above.

Location of the recipient of service: - The location of the usual place of
residence of the recipient.

Location of the supplier of service: Sec 2(15) of IGST Act, the definition of
location of supplier of service divided into 4 sub clauses:

Supplier of service: - (a) Supply is made from a place of business where

registration is obtained.
Location of the supplier of service: - Location of such place of business

Supplier of service: - (b) Supply is made from a fixed establishment

Location of the supplier of service: -Location of such fixed establishment

Supplier of service: -(c) Supply is made from more than one establishment

26
Location of the supplier of service: -The location of establishment most directly
concerned with the provision of the supply

Supplier of service: - (d) Services received at other than above

location of the supplier of service: -The location of the usual place of residence
of the supplier.

Place of supply of services directly in relation to an immovable property

[Sec. 12(3)(a) of IGST Act, 2017]:

Nature of service: -1 Architects, 2 Interior decorator, decorator 3 Surveyors ,4

Engineers and other related exports or estate agents, 5 Any service provided by
way of grant of rights to use immovable property, 6 for carrying out or co-
ordination of construction work.
Place of supply of service: -Immovable property located or intended to be

the recipient.

Place of supply of services by way of accommodation in any immovable

property for organizing [Sec. 12(3)(c) of IGST Act, 2017]:
Nature of service: - 1 Any marriage or reception or matters related there to, 2
Official, social, cultural, religious or business function including services
provided in relation to such function at such property
Place of supply of service: - Property located or intended to be located in India:

Place of supply of services in relation to [Sec. 12(4) of IGST Act, 2017]:

Nature of service: - 1 Restaurant 2 Catering services 3 Personal grooming 4
Fitness services 5 Beauty treatment services 6 Health services including
cosmetic and plastic surgery
Place of supply of service: - Location where the services are actually
performed.

Place of supply of services in relation to training and performance

appraisal [Sec. 12(5) of IGST Act, 2017]:
Nature of service: - Services in relation to training and performance appraisal
Place of supply of service: -
recipient of Service Provided to an un-
services are actually performed.

27
Place of supply of services provided by way of admission to a [Sec. 12(6) of
IGST Act, 2017]:
Nature of service: - 1 Cultural 2 Artistic 3 Sporting 4 Scientific 5 Educational
6 Entertainment event or Amusement part or any other place.
Place of supply of service: - Where the event is actually held or where the park
or such other place is located.

Place of supply of services by way of transportation of goods including by

mail or courier [Sec. 12(8) of IGST Act, 2017]:
Nature of service: - Services by way of Transportation of goods including by
mail or courier
Place of supply of service: - Pr
recipient of Service. Provided to an un-
such goods are handed over for their transportation.

Sec 2(52) of CGST Act, Goods means: Every kind of movable property other
than money and securities but includes actionable claim, growing crops, grass
and things attached to or forming part of the land which are agreed to be served
before supply or under a contract of supply.

Sec 2(3) of IGST Act, 2017 defines Continuous journey: Means a journey for
which a single or more than one ticket or invoice is issued at the same time,
either by a single supplier of service or through an agent acting on behalf of
more than one supplier of service, and which involves no stopover between any
of the legs of the journey for which one or more separate tickets or invoices are
issued.

Place of supply of passenger transportation service

[Sec 12(9) of IGST Act]:

Nature of service: - Passenger transportation service. Including: Rail, Mono

Rail, Metro Rail, Road, Air, Vessel, boat, Cycle rickshaw, Bullock cart, Camel
etc.
Place of supply of service: - Provided to a registered person:
n-registered person:

Nature of service: - Right to passage is given for future use and point of
embarkation is not known at the time of issue of such right

28
Place of supply of service: - Provided to a registered person:
-registered person:

supplier in other cases.

Place of Supply of service on board a conveyance [Sec 12(10) of IGST Act]:

Nature of service: - 1 Vessel 2 Aircraft 3 Train 4 Motor vehicle
Place of supply of service: - Location of the first scheduled point of departure
of that conveyance for the journey.

Place of supply of banking and NBFC service including stock broking

services [Sec 12(12) of IGST Act]:

Nature of service: - Banking and NBFC service including stock broking

services
Place of supply of service: -
the supplier of service. Otherwise:

Place of supply of insurance services [Sec 12(13) of IGST Act]:

Nature of service: - Insurance services
Place of supply of service: - To a registered person

Place of supply of advertisement services to specified persons [Sec 12(14) of

IGST Act, 2017]
Nature of service: - Advertisement services to

Place of supply of service:- Located in each of such states and the value of
such supplies specific to each state shall be in proportion to amount attributable
to service provided by way of dissemination in the respective states.

Place of supply of service where location of Supplier of Service or Location

of Recipient of Service is outside India [Sec. 13 (1) of the IGST Act, 2017]
Services are grouped into
-sec (3) to (13) of Sec 13
are not applicable.
to 13(13)

29
Place of supply services on Goods [Sec. 13(3)(a) of IGST Act]:
Nature of service: -
the receiver to the service provider in order to provide the service
Place of supply of service: - location where the services are actually
performed.

Nature of service: - services provided by way of electronic means in relation to

tangible goods,
Place of supply of service: - the actual location of goods.

Sec 13(3)(a) of IGST Act, 2017 is not applicable: If the following two
conditions are satisfied then Sec 13(2) of IGST Act, 2017 is applicable:
i. If goods are to be temporarily imported into India for repairs
only as against repairs and are exported after repairs
ii. ii. without being put to any other use in India, then that which is
required for such repairs.

Place of supply services on Goods [Sec. 13(3)(b) of IGST Act]:

Nature of service: - Services supplied to an Individual, represented either as
the service receiver or a person acting on behalf of the receiver, which require
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 where the services are actually
performed.

Place of supply of services supplied directly in relation to an immovable

property [Sec 13(4) of IGST Act]
Nature of service: - yment or
provision of hotel accommodation by a hotel, guest house, club

people, relating to
land, buildings or civil engineering works etc.
Place of supply of service: - Where immovable property is located or intended
to be located

30
Place of supply of services supplied by way of admission to or organization
of [Sec 13(5) of IGST Act]:
Nature of service: -

Place of supply of service: - Where event is actually held.

Services referred u/s 13(3) or (4) or (5) is supplied at more than one
location [Sec. 13(6) of IGST Act]: Where any service stated in sub-sec 3, 4, or
5 of Sec 13 is provided at more than one location, including a location of
taxable territory, its place of supply shall be the location in the taxable territory.
Place of supply of service will be the place in the taxable territory (i.e., Chennai
and Cochin). X Ltd. is liable to pay CGST and SGST for the part of Chennai . X
Ltd. is liable to pay IGST for the part of Cochin. X Ltd. is also liable to pay
CGST and SGST as well as IGST for the services rendered in Colombo in ratio
4:5. It means tax will be payable on the entire value.

Sec 13(3) or (4) or (5) Services performed in more than one State [Sec.
13(7) of IGST Act]: In case of Sec 13(3) or (4) or (5) services performed in
more than one State or Union Territory, the place of supply of such services
shall be taken as deemed in each of the State or Union Territories in proportion
to the value of services so provided.
The value of services is required to be determined in terms of the agreement or
any reasonable means.

Specified Services [Sec. 13(8) of IGST Act] Place of supply of services =

Location of the service provider Specified services includes:
(a) Services provided by a banking company, or financial company, or a NBFC
to account holders
(b) Intermediary services
(c) Services consisting of hiring of means of transport, other than, -
(i) aircrafts, and (ii) vessels except yachts up to a period of one month
Services provided by a banking company or financial company or a NBFC
to account holders.

31
Intermediary services Includes the following:

goods)

Passenger Transportation Services [Sec 13(10) of IGST Act]:

The place of supply of service = where the passenger embarks on the
conveyance for a continuous journey.

Services Provided on Board Conveyances [Sec. 13(11) of IGST Act]:

Any service provided on board a conveyance (air craft, vessel, rail, or roadways
bus) will be covered here. POS = The first scheduled point of departure of that
conveyance for the journey.

Online information and database access or retrieval services [Sec 13(12) of

IGST Act]:
POS = Location of the recipient of service
Recipient of service deemed to be located in the taxable territory, if any two of
the following conditions are satisfied:
(a) the location of address presented by the recipient of services through internet
is in the taxable territory;
(b) the credit card or debit card or store value card or charge card or smart card
or any other card by which the recipient of services settles payment has been
issued in the taxable territory;
(c) the billing address of the recipient of services is in the taxable territory;
(d) the internet protocol address of the device used by the recipient of services
is in the taxable territory;
(e) the bank of the recipient of services in which the account used for payment
is maintained is in the taxable territory;
(f) the country code of the subscriber identity module card used by the recipient
of services is of taxable territory;
(g) the location of the fixed land line through which the service is received by
the recipient is in the taxable territory.

Power to notify supply of a services or circumstances [Sec 13(13) of IGST

Act]: In order to prevent double taxation or non-taxation of the supply of a
service, or for the uniform application of rules, the Government shall have the
power to notify any description of services or circumstances in which the place
of supply shall be the place of effective use and enjoyment of a service.

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