GSTR-3B Returns in a Staggered Manner

Ministry of Finance
Now the GST Taxpayers can file their GSTR-3B Returns in a Staggered Manner
                     #GSTUpdates #GSTR3B #DueDates #STAGGERED

Posted On: 22 JAN 2020 6:29PM by PIB Delhi
Considering the difficulties faced by trade and industry in filing of returns, the government has decided to introduce several measures to ease the process. The Finance Ministry today said that now GST taxpayers can file their GSTR-3B returns in a staggered manner.

Presently the last date of filing GSTR-3B returns for every taxpayer is 20th of every month. From now on, the last date for filing of GSTR-3B for the taxpayers having annual turnover of Rs 5 crore and above in the previous financial year would be 20th of the month. Thus, around 8 lakh regular taxpayers would have the last date of GSTR-3B filing as 20th of every month without late fees.

The taxpayers having annual turnover below Rs 5 crore in previous financial year will be divided further in two categories. The tax filers from 15 States/ UTs, i.e., Chhattisgarh, Madhya Pradesh, Gujarat, Daman and Diu, Dadra and Nagar Haveli, Maharashtra, Karnataka, Goa, Lakshadweep, Kerala, Tamil Nadu, Puducherry, Andaman and Nicobar Islands, Telangana and Andhra Pradesh will now be having the last date of filing GSTR-3B returns as 22nd of the month without late fees. This category would have around 49 lakh GSTR-3B filers who would now have 22nd of every month as their last date for filing GSTR-3B returns.

For the remaining 46 lakh taxpayers from the 22 States/UTs of Jammu and Kashmir, Laddakh, Himachal Pradesh, Punjab, Chandigarh, Uttarakhand, Haryana, Delhi, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand and Odisha having annual turnover below Rs 5 crore in previous financial year will now be having last date of filing the GSTR-3B as 24th  of the month without late fees.

The Finance Ministry said that the necessary notification in this regard would be issued later by the competent authority.

In a statement issues, the Ministry further said that it has also taken a note of difficulties and concerns expressed by the taxpayers regarding filing of GSTR-3B and other returns. The matter has been discussed by the GSTN with Infosys, the Managed Service Provider, which has come out with above solution to de-stress the process as a temporary but immediate measure. For further improving the performance of GSTN filing portal on permanent basis, several technological measures are being worked out with Infosys and will be in place by April 2020.

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Last date to file GST annual returns extended till Nov 30

New Delhi, Aug 26 The finance ministry on Monday said the last date for filing annual GST returns has been extended by three months to November 30 as taxpayers were facing technical problems in furnishing returns.

Earlier, GST taxpayers were to file required returns by August 31.

"It is hereby informed that the last date for furnishing of annual return in the Form GSTR-9 / Form GSTR-9A and reconciliation statement in the Form GSTR-9C for the financial year 2017-18 is extended from August 31, 2019 to November 30, 2019," the Central Board of Indirect Taxes & Customs (CBIC) said in a statement.

GSTR 9 is an annual return to be filed yearly by taxpayers registered under the Goods and Services Tax (GST). It consists of details regarding the outward and inward supplies made or received under different tax heads.

While extending the date, the CBIC said "certain technical problems are being faced" by the taxpayers as a result annual return for the period July 1, 2017 to March 31, 2018 could not be furnished by persons registered under GST.

GSTR-9C is filed by those whose annual turnover exceeds Rs 2 crore. It is a statement of reconciliation between GSTR-9 and the audited annual financial statement, while GSTR-9A is the annual return to be filed those who have opted for the Composition Scheme under GST.

What is the consequence of non-filing the return? 
Failure to file annual return shall attract a late fee of INR 200 per day during the period of failure, subject to a maximum of 0.25% of the said Financial Year's turnover. 

Whether the annual return can be revised 

As there is no specific provision in GST law to revise the annual return hence, based upon the current version of the law, it appears that once filed the same cannot be revised. 

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Analysis of clarifications on filing of Annual Return (FORM GSTR-9)

The due date for filing of Form GSTR 9 is 30th June 2019. Mean while the government has issued certain clarifications vide press release dated 03.06.2019.  The press release is like an “oxymoron” where some clarifications adding to the confusion. However it may be noted that press release is not any legal document. Given below is a brief comment on the various clarifications issued.

S.No.	Clarification	Comment
a	Information contained in FORM GSTR-2A as on 01.05.2019 shall be auto-populated in Table 8A of FORM GSTR-9.	The GSTR 2A downloaded from the portal is not matching with the auto-populated in Table 8A. This has been a concern in many of the cases, making businesses ponder upon what the programming of the GSTIN portal is. Now it is clarified that the data as reflecting as on 01.05.2019 shall be auto populated. It would have been better if the data is updated and auto-populated on real time basis. Given that only 25 days are left for the due date, it is an issue to be addressed at the earliest.
b	Input tax credit on inward supplies shall be declared from April 2018 to March 2019 in Table 8C of FORM GSTR-9.	The last date for availing input tax credit is September of the following year or filing of annual return whichever is earlier.  This time limit was extended to March 2019 by issue of Removal of difficulty order. However the heading of Table 8C  is “ITC of F.Y. 17-18 but availed in April 18 to Sep 18. Therefore clarification is issued that, in Table 8C, details from April 18 to Mar 19 is to be given. However no notification is issued.
c	Particulars of the transactions for FY 2017-18 declared in returns between April 2018 to March 2019 shall be declared in Pt. V of FORM GSTR-9. Such particulars may contain details of amendments furnished in Table 10 and Table 11 of FORM GSTR-1.	The last date for making any corrections or amendments in the GST returns is September of the following year or filing of annual return whichever is earlier.  This time limit was extended to March 2019 by issue of Removal of difficulty order. However the Part V still required details of April 18 to Sep 18. Therefore clarification is issued that, in Part V details from April 18 to March 19 is to be given. However no notification is issued.
d	It may be noted that irrespective of when the supply was declared in FORM GSTR-1, the principle of declaring a supply in Pt. II or Pt. V is essentially driven by when was tax paid through FORM GSTR-3B in respect of such supplies. If the tax on such supply was paid through FORM GSTR-3B between July 2017 to March 2018 then such supply shall be declared in Pt. II and if the tax was paid through FORM GSTR- 3B between April 2018 to March 2019 then such supply shall be declared in Pt. V of FORM GSTR-9.	In case of mismatch in GSTR 3B and GSTR 1, GSTR 3B shall prevail. Supplies declared in July to March 18 in GSTR 3B shall be declared in Part II and Supplies declared in April 18 to March 19 in GSTR 3B shall be declared in Part V.
e	Any additional outward supply which was not declared by the registered person in FORM GSTR-1 and FORM GSTR-3B shall be declared in Pt.II of the FORM GSTR-9. Such additional liability shall be computed in Pt.IV and the gap between the “tax payable” and “Paid through cash” column of FORM GSTR-9 shall be paid through FORM DRC-03.	Outward supplies not declared in GSTR 3B and GSTR1 shall also be declared in Part II. The additional liability now payable shall also be declared in part IV. And paid through DRC 03
f	Many taxpayers have reported a mismatch between auto-populated data and the actual entry in their books of accounts or returns. One common challenge reported by  taxpayer is in Table 4 of FORM GSTR-9 where details may have been missed in FORM GSTR-1 but tax was already paid in FORM GSTR-3B and therefore  taxpayers see a mismatch between auto-populated data and data in FORM GSTR-3B. It may be noted that auto-population is a functionality provided to taxpayers for facilitation purposes, taxpayers shall report the data as per their books of account or returns filed during the financial year.	As per the instructions to Form GSTR 9, only as Table Entry 6A and Table Entry 8A shall be auto-populated. However in the portal in GSTR 9 many entries are being auto-populated. It says, in Form GSTR 9, “taxpayers shall report the data as per their books of account or returns filed during the financial year.” So again, with this clarification, they have confused whether to fill GSTR 9 as per books of accounts or Returns.
g	Many taxpayers have represented that Table 8 has no row to fill in credit of IGST paid at the time of import of goods but availed in the return of April 2018 to March 2019. Due to this, there are apprehensions that credit which was availed between April 2018 to March 2019 but not reported in the annual return may lapse. For this particular entry, taxpayers are advised to fill in their entire credit availed on import of goods from July 2017 to March 2019 in Table 6(E) of FORM GSTR-9 itself.	IN table 8 there was no entry fto show IGST on goods imported in F.Y. 17-18 but ITC in F.Y. 18-19. It is clarified that said details is to be mentioned in Table Entry No 6E. This may give difference, at Entry No 6J and also it will add un reconciled item for Form GSTR 9C. There was a mistake in the drafting of the form and through this clarification, there is a trail to cover the error. However the clarification will lead to mismatch at Entry No. 6J as provided above.
h	Payments made through FORM DRC-03 for any supplies relating to period between July 2017 to March 2018 will not be accounted for in FORM GSTR-9 but shall be reported during reconciliation in FORM GSTR-9C.	As per Para (e) the additional liability can be paid in Form GSTR 9. However in this para it is said that the additional liability shall not be reported in GSTR C7 but shall be reported  as reconciliation item in GSTR 9C. This is again a confusing clarification.
i	All the taxpayers are requested to file their Annual Return (FORM GSTR-9) at the earliest to avoid last minute rush.	The due date was already extended twice, there does not seem to be any further extension in spite of the various confusions in the form

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GST Council extends GST3B Filing Due Date to 22nd February for January 2019

Today is last date to file GSTR 3b for the month of January 2019 and GST portal is not working since morning. It was expected that GST council may extend the Due date of filing GSTR 3B for the month of January 2019. On the GST website and twitter channel of CNBC-TV18 it has mentioned that GST Council has extended due date of filing GSTR 3B by 2 days.  Official information in this regards is yet to come. 
GSTR 3B Filing Due Date Extended by 2 days and for J&k it has extended till 28th February 2019 for January 2019. Official Notification is yet to Come in this regards.  

10 Changes in GST law by GST (Amendment) Act 2018

he Provisions of GST (Amendment) Act 2018 have been made applicable from 1st February 2019. Below is the gist of the amendments made thereon :

1. Definitions

i. Central Board of Excise & Customs (CBEC) has been substituted with Central Board of Indirect Taxes & Customs (CBIC)

ii. Following has been included in the definition of business : Activities of a race club including by way of totalisator or a license to book maker or activities of a licensed book maker in such club

iii. Definition of Business vertical has been removed

iv. It has been clarified that – “services” includes facilitating or arranging transactions in securities

2. Reverse Charge for supplies from unregistered to registered persons

Now only the goods or services, which will be notified by government, will be taxable under reverse charge, if supplied from unregistered person to the notified registered persons. Accordingly, coverage of this section is restricted now.

3. Composition Scheme:

1. Limit for composition scheme has been increased from Rs. 1 crores to Rs. 1.5 Crores

2. Composition dealers may now supply services of value not exceeding- 10% of turnover in a State or Union territory in the preceding financial year or 5 Lakhs, whichever is higher

3. Rate of tax on services by composition dealer- 0.5% and 0.5%- SGST and CGST

4. Inadmissible Input Tax Credits (ITC) under GST- Section 17(5) of CGST Act 2017

Following are amendments in regards to the same:

1. Earlier the ITC on all types of motor vehicles was restricted, however, the same has not been restricted only to motor vehicles having approved seating capacity up to 13 persons (including driver). However, it shall be allowed, If input service used for following taxable supplies:

a) further supply of such vehicles or conveyances

b) transportation of passengers

c) imparting training on such motor vehicles

2. ITC is not available on Vessels. However, it shall be allowed, if input service used for following taxable supplies:

a) further supply of such vessels & aircrafts

b) transportation of passengers

c) imparting training on navigating such vessels or flying aircrafts

d) transportation of goods

3. ITC has been blocked on Services of general insurance, servicing, repair and maintenance in so far as they relate to motor vehicles, vessels or aircraft, as specified in clause (a) and (b) above

4. Restriction of ITC in following cases:

ITC not available on	Exceptions
Food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, leasing, renting or hiring of motor vehicles, vessels or aircraft as referred in clause (a) & (aa) above, except when used for the purposes specified therein, life insurance and health insurance	When used in supply of similar nature of business
Membership of a club, health and fitness centre	NO EXCLUSION
Travel benefits extended to employees on vacation such as leave or home travel concession	If input service used for: a) employees, if made obligatory by government under any law

5. GST Registration –

1. Earlier every Electronic commerce operator was liable to mandatorily get registered under GST, however, such has now been made mandatory, only if he is liable to collect tax at source.

2. Earlier a person was not allowed to take multiple registrations within same state for same business vertical. Only different verticals were allowed to take separate registration. However, now multiple registrations can be taken within same state for same business & each of them shall be treated as distinct person.

3. During the ongoing process of cancellation of registration, there would be temporary suspension of registration. This would result into releasing the compliance burden while the cancellation of registration is under process.

6. Invoicing

Now consolidated debit notes / credit notes can be issued for more than one number of original invoices.

7. GST Audit

 The same is not applicable now to any Government Department, whose accounts are audited by Comptroller & Auditor General (C&AG) of India.

8. Place of Supply

1. New proviso has been inserted in Section 12 of IGST Act 2017, which states that the place of supply in case of transportation of goods to a place outside India shall be place of destination of such goods, i.e. place outside India. Accordingly, transportation of goods is not liable to GST when goods transported outside India from a place in India

2. As per the earlier provision of Section 13 of IGST Act 2017, tax exemption was available in case of job work services supplied in respect of goods which are temporarily imported into India only for the purpose of repairs and the said goods are exported back after such repairs.

However, amendment with effect from 1st Feb 2019 has been made to extent the tax exemption benefit in case of job work services supplied in respect of goods which are temporarily imported into India for repairs or for any other treatment or process and the said goods are exported back after such repairs or treatment or process.
Accordingly, now the scope of exemption has been extended and covered all the process and treatment done on goods imported temporarily

9. Returns

It has been mentioned that Government may notify certain classes of registered persons who shall pay the tax due or part thereof as per the return on or before the last date on which he is required to furnish such return.

10. Input Tax Credit (ITC):

1. No reversal of common input tax credit is required on activities or transactions specified in schedule III other than sales of land and sale of building

2. New Section 43A has been introduced, which mentions to prescribe the procedure for furnishing return & availment of Input Tax Credit. It mentions that new rules may include that maximum ITC that can be utilized in that period shall not exceed 20% of ITC available.

3. The supplier and the recipient shall be jointly held liable for payment of tax or payment of input tax credit availed in relation to the outward supplies for which details have been furnished but the return has not been furnished.

4. The criteria for setting off of Input Tax Credit (ITC) has been changed by introduction of Section 49A & 49B

As per old rules, following was the priority of set-off of ITC was as below:

• For CGST Output – First set off thru ITC of CGST, then IGST
• For SGST Output – First set off thru ITC of SGST, then IGST
• For IGST Output – First set off thru ITC of IGST, then CGST & then SGST

As per CGST (Amendment) Act 2018, the priority of set-off of ITC is as below:

• For CGST Output- First set off thru ITC of IGST, then CGST
• For SGST Output – First set off thru ITC of IGST, then SGST
• For IGST Output – First set off thru ITC of IGST, then CGST & then SGST

Let us understand the same with help of an example:

Head	Output Liability	Input Tax Credit available (ITC)	As per old Set-off rules		As per revised Set-off rules (applicable from 1st Feb 2019)
			Paid thru ITC	Paid thru Cash	Paid thru ITC	Paid thru Cash
CGST	800	500	CGST- 500 IGST- 300	0	IGST- 800	0
SGST	400	200	SGST-200 IGST-200	0	SGST- 200	200
IGST	0	800	–	0	–

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FAQs on Place of Supply of Goods and Service under GST

Q.1 What is the need for the Place of Supply of Goods and Services under GST?

Ans. The basic principle of GST is that it should effectively tax the consumption of such supplies at the destination thereof or as the case may at the point of consumption. So place of supply provision determines the place i.e. taxable jurisdiction where the tax should reach.The place of supply determines whether a transaction is intra-state or inter-state. In other words, the place of Supply of Goods or services is required to determine whether a supply is subject to SGST plus CGST in a given State or union territory or else would attract IGST if it is an inter-state supply.

Q.2 Why are place of supply provisions different in respect of goods and services?

Ans. Goods being tangible do not pose any significant problems for determination of their place of consumption. Services being intangible pose problems w.r.t determination of place of supply mainly due to following factors:

(i) The manner of delivery of service could be altered For example, telecom service could change from mostly post-paid to mostly pre-paid; billing address could be changed, billers address could be changed, repair or maintenance of software could be changed from onsite to online; banking services earlier required the customer to go to the bank, now the customer could avail service from anywhere;

(ii) Service provider, service receiver and the service provided may not be ascertainable or may easily be suppressed as nothing tangible moves and there would hardly be a trail;

(iii) For supplying a service, a fixed location of service provider is not mandatory and even the service recipient may receive service while on the move. The location of billing could be changed overnight;

(iv) Sometime the same element may flow to more than one location, for example, construction or other services in respect of a railway line, a national highway or a bridge on a river which originate in one state and end in the other state. Similarly, a copy right for distribution and exhibition of film could be assigned for many states in single transaction or an advertisement or a programme is broadcasted across the country at the same time. An airline may issue seasonal tickets, containing say 10 leafs which could be used for travel between any two locations in the country. The card issued by Delhi metro could be used by a person located in Noida, or Delhi or Faridabad, without the Delhi metro being able to distinguish the location or journeys at the time of receipt of payment;

(v) Services are continuously evolving and would thus continue to pose newer challenges. For example, 15-20 years back no one could have thought of DTH, online information, online banking, online booking of tickets, internet, mobile telecommunication etc.

Q.3 What proxies or assumptions in a transaction can be used to determine the place of supply?

Ans. The various element involved in a transaction in services can be used as proxies to determine the place of supply. An assumption or proxy which gives more appropriate result than others for determining the place of supply, could be used for determining the place of supply. The same are discussed below:

(a) location of service provider;

(b) the location of service receiver;

(c) the place where the activity takes place/ place of performance;

(d) the place where it is consumed; and

(e) the place/person to which actual benefit flows

Q.4 What is the need to have separate rules for place of supply in respect of B2B (supplies to registered persons) and B2C (supplies to unregistered persons) transactions?

Ans. In respect of B2B transactions, the taxes paid are taken as credit by the recipient so such transactions are just pass through. GST collected on B2B supplies effectively create a liability for the government and an asset for the recipient of such supplies in as much as the recipient is entitled to use the input tax credit for payment of future taxes. For B2B transactions the location of recipient takes care in almost all situations as further credit is to be taken by recipient. The recipient usually further supplies to another customer. The supply is consumed only when a B2B transaction is further converted into B2C transaction. In respect of B2C transactions, the supply is finally consumed and the taxes paid actually come to the government.

22.1 Place of Supply of Goods

Q.5 What would be the place of supply where movement of goods is involved?

Ans. The place of supply of goods shall be the location of the goods at the time at which the movement of goods terminates for delivery to the recipient. (Section 10 of IGST Act)

Q.6 What would be the place of supply wherein the supplier hands over the goods to recipient in his state and further movement is caused by the recipient?

Ans. The movement can be caused by supplier, recipient or any other person. Where the supply involves movement of goods, the place of supply shall be the location where the movement of goods terminates for delivery to the recipient.

Illustration: A person from Gujarat comes to Mumbai and purchases goods. He declared his Gujarat GSTIN, arranges transport himself and takes goods to Gujarat. The place of supply would be Gujarat in this case.

Q.7 What is the place of supply wherein movement of goods is not involved?

Ans. Where supply does not involve movement of goods, the place of supply shall be the location of goods at the time of delivery to the recipient.

Illustration: A in Mumbai has given his goods on lease basis to B in Delhi. After some time, the lessee B decides to purchase the goods. The supply takes place by way of change of title and no movement is required as the goods are already with the buyer. The place of supply is Delhi, the location of goods at the time of delivery.

Q.8 What will be the place of supply if the goods are delivered by the supplier to a person on the direction of a third person?

Ans. It would be deemed that the third person has received the goods and the place of supply of such goods shall be the principal place of business of such person. (Section 10 of IGST Act)

Such cases are termed as bill to ship to cases wherein the supplier sends the invoice to the buyer and the goods to the recipient on the direction of the buyer. Even though the goods are not received by the buyer, it is presumed that he has received the goods and he is able to take the input tax credit. The buyer may further issue his invoice to the actual recipient of goods. Thus, it is a tripartite arrangement wherein there are usually three parties and two transactions.

In the above case, goods go directly to C. The place of supply is location of B

Location of Supplier	Location of third Party	Delivery of goods	Place of Supply
First Transaction between A and B with delivery to C
Mumbai (Maharashtra)	Delhi	Gurgaon (Haryana)	Delhi

Q.9 What will be the place of supply where the goods or services are supplied on board a conveyance, such as a vessel, an aircraft, a train or a motor vehicle?

Ans. In respect of goods, the place of supply shall be the location at which such goods are taken on board. (Section 10 (1)(e) of IGST Act). For instance, if goods are taken on board at Vadodara, Gujarat on Rajdhani Express from Mumbai to Delhi. The place of supply shall be Vadodara, Gujarat.

However, in respect of services, the place of supply shall be the location of the first scheduled point of departure of that conveyance for the journey. (Section 12 and 13 of IGST Act)

Q.10 What is the place of supply in case of assembly or installation of goods at site?

Ans. The place of supply of goods, where the goods are installed or assembled at the site, will be the place of such installation or assembly. (Section 10(1)(d) of IGST Act)

Q.11 What is the place of supply of goods imported into India?

Ans. The place of supply of goods imported into India shall be the location of the importer.

Illustration: An importer from Jaipur, Rajasthan imports goods from China through Mumbai Air Cargo and declared the GSTIN of Rajasthan. The place of supply of goods shall be Rajasthan. Thus, the state tax component of the integrated tax would accrue to Rajasthan.

Q.12 What is the place of supply of goods exported from India?

Ans. The place of supply of goods exported from India shall be the location outside India.

22.2 Place of Supply of Services (Location of supplier as well as recipient are in India)

Q.13 What is the default presumption for place of supply in respect of B2B supply of services?

Ans. The terms used in the IGST Act are registered taxpayers and unregistered person. The presumption in case of supplies to registered person is the location of such person until and unless otherwise specified.

Q.14 What is the default presumption for place of supply in respect of unregistered recipients?

Ans. In respect of unregistered recipients, the usual place of supply is the location of the recipient, where the address on records exists. However, in many cases, the address of recipient is not available, in such cases, location of the supplier of services is taken as proxy for place of supply.

Q.15 What is the place of supply in case of services in relation to immovable property?

Ans. Any service provided 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 coordination of construction shall be the location at which the immovable property is situated. (Section 12(3) of the IGST Act)

Q.16 What is the place of supply in respect of a service of interior decorator in relation to a palace in Nepal by an interior designer from Mumbai to a person from Delhi?

Ans. The place of supply shall be the location of recipient viz Delhi. (Proviso clause to section 12(3) of IGST Act)

Q.17 The place of supply in relation to immovable property is the location of immovable property. Suppose a road is constructed from Delhi to Mumbai covering multiple states. What will be the place of supply?

Ans. Where the immovable property is located in more than one State, the supply of service shall be treated as made in each of the States 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 reasonable basis as may be prescribed in this behalf. (The Explanation clause to section 12(3) of the IGST Act, for domestic supplies)

Q.18 What is the place of supply of services of accommodation services in homestays in Goa?

Ans. The place of supply shall be Goa, the location of the homestay. (Section 12(3) of the IGST Act).

Q.19 What would be the place of supply of services provided for organizing an event, say, IPL cricket series which is held in multiple states?

Ans. In case of an event, if the recipient of service is registered, the place of supply of services for organizing the event shall be the location of such person.

However, if the recipient is not registered, the place of supply shall be the place where event is held. Since the event is being held in multiple states and a consolidated amount is charged for such services, the place of supply shall be taken as being in each state in proportion to the value of services so provided in each state. (The Explanation clause to section 12(7) of the IGST Act)

Q.20 What will be the place of supply of goods services by way of transportation of goods, including mail or courier?

Ans. In case both location of supplier & location of recipient is in India: If the recipient is registered, the location of such person shall be the place of supply.

However, if the recipient is not registered, the place of supply shall be the place where the goods are handed over for their transportation (section 12(8) of the IGST Act.)

However, where the transportation of goods is to a place outside India, the place of supply shall be the place of destination of such goods (This proviso to section 12(8) has been inserted vide the IGST (Amendment) Act, 2018, however, the notification to bring it into effect is yet to be issued)

In case location of supplier or location of recipient is outside India: The place of supply of services of transportation of goods, other than by way of mail or courier, shall be the place of destination of such goods. For courier, the place of supply of services shall be the location of the recipient of services. Wherever the location of the recipient of services is not available in ordinary course of business, the Place of supply shall be location the supplier of service.

Q.21 A film star from Mumbai gets his cosmetic surgery done in a Hospital in Delhi. What should be the place of supply?

Ans. The place of supply shall be based on the principle of place of performance and shall be in Delhi. (Section 12(4) of IGST Act)

Other such similar services requiring physical presence of natural person (recipient) like restaurant and catering services, personal grooming, fitness, beauty treatment, health services including cosmetic and plastic surgery shall be the location where the services are actually performed.

Q.22 What will be the place of supply in case of training services provided in Goa?

Ans. When provided to a registered person: The place of supply shall be the location of such registered person. If M/s Mahindra & Mahindra Ltd, Mumbai conducts training for its employees at Goa, the place of supply shall be Mumbai.

When provided to a person other than a registered person: The place of supply shall be the location where the services are actually performed viz Goa

Q.23 What will be the place of supply of passenger transportation service, if a person travels from Mumbai to Delhi and back to Mumbai?

Ans. If the person is registered, the place of supply shall be the location of recipient. If the person is not registered, the place of supply for the forward journey from Mumbai to Delhi shall be Mumbai, the place where he embarks.

However, for the return journey, the place of supply shall be Delhi as the return journey has to be treated as separate journey. (The Explanation clause to section 12(9) of the IGST Act)

Q.24 Suppose a ticket/pass for anywhere travel in India is issued by M/s Air India to a person. What will be the place of supply?

Ans. In the above case, the place of embarkation will not be available at the time of issue of invoice as the right to passage is for future use. Accordingly, place of supply cannot be the place of embarkation. In such cases, the default rule shall apply. (The proviso clause to section 12(9) of the IGST Act)

Q.25 What will be the place of supply for mobile connection? Can it be the location of supplier?

Ans. For domestic supplies: The location of supplier of mobile services cannot be the place of supply as the mobile companies are providing services in multiple states and many of these services are inter-state. The consumption principle will be broken if the location of supplier is taken as place of supply and all the revenue may go to a few states where the suppliers are located.

The place of supply for mobile connection would depend on whether the connection is on postpaid or prepaid basis. In case of postpaid connections, the place of supply shall be the location of billing address of the recipient of service.

In case of pre-paid connections, the place of supply shall be the place where payment for such connection is received or such pre-paid vouchers are sold. However, if the recharge is done through internet/e-payment, the location of recipient of service on record shall be the taken as the place of service.

For international supplies: The place of supply of telecom services is the location of the recipient of service.

Q.26 A person in Goa buys shares from a broker in Delhi on NSE (in Mumbai). What will be the place of supply?

Ans. The place of supply shall be the location of the recipient of services on the records of the supplier of services. So Goa shall be the place of supply.

Q.27 A person from Mumbai goes to Kullu-Manali and takes some services from ICICI Bank in Manali. What will be the place of supply?

Ans. If the service is not linked to the account of person, place of supply shall be Kullu i.e. the location of the supplier of services. However, if the service is linked to the account of the person, the place of supply shall be Mumbai, the location of recipient on the records of the supplier.

Q.28 A person from Gurgaon travels by Air India flight from Mumbai to Delhi and gets his travel insurance done separately in Mumbai. What will be the place of supply of insurance service?

Ans. The location of the recipient of services on the records of the supplier of insurance services shall be the place of supply. So Gurgaon shall be the place of supply. (Proviso clause to section 12(13) of the IGST Act)

Q.29 A person from Gurgaon travels by Air India flight from Mumbai to Delhi and gets his travel insurance done in Mumbai. What will be the place of supply?

Ans. The location of the recipient of services on the records of the supplier of insurance services shall be the place of supply. So Gurgaon shall be the place of supply. (Proviso clause to section 12(13) of the IGST Act)

22.3 Place of Supply of Services (Location of supplier or recipient is outside India)

Q.30 What is the place of supply in respect of goods that are required to be made physically available for providing the service?

Ans. The place of supply of service in respect of goods that are required to be made physically available by the recipient of service to the supplier of service shall be the location where the services are actually performed. (Section 13 (3) (a) of the IGST Act, 2017)

Q.31 What is the place of supply of services provided from a remote location using electronic means on goods?

Ans. The place of supply shall be the location where the goods are actually located at the time of supply of services. (Proviso to Section 13(3) (a) of the IGST Act, 2017)

Illustration: A Laptop at Mumbai is repaired remotely by a software engineer from Bangalore using TeamViewer software. The place of supply shall be Mumbai, the place where the goods are located.

Q.32 Whether supplies by a banking company, or a financial institution, or a non-banking financial company, in Mumbai to its account holders in Dubai can be considered as export of service?

Ans. No. The place of supply of such services is location of supplier and therefore these cannot be considered as export of services. In the present case, the supplier being located in Mumbai and place of supply also in Mumbai, these services will be taxed and CGST plus SGST would be levied. [ Section 13(8)(a) of IGST Act]

Q.33 Who is an intermediary?

Ans. “intermediary” means a broker, an agent or any other person, by whatever name called, who arranges or facilitates the supply of goods or services or both, or securities, between two or more persons, but does not include a person who supplies such goods or services or both or securities on his own account.

Q.34 What is the place of supply of an intermediary?

Ans. The place of supply for intermediary services will be the location of supplier of service. It is to be noted that this rule will apply only when either the supplier or recipient is located outside India.

Q.35 What would be the place of supply in respect of services pertaining to goods transportation, wherein either the supplier or recipient is located outside India?

Ans. The place of supply of services of transportation of goods, other than by way of mail or courier, shall be the place of destination of such goods. (Section 13(9) of IGST Act)

For goods transportation via mail or courier, the default provision of Section 13(2) will apply i.e. place of supply will be the location of the recipient of service.

Q.36 What would be the place of supply in respect of Online Information and Database Access or Retrieval (OIDAR) Services?

Ans. For OIDAR services the place of supply will be the location of recipient of services. In case the recipient of OIDAR services is registered, he will pay Integrated tax on reverse charge basis. However, if the recipient is unregistered, the supplier will be liable to pay the tax. For the purpose of determining place of supply, the location of recipient of service shall be deemed to be in the taxable territory if any two of the following seven non-contradictory conditions are satisfied, namely: –

(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.

Q.37 Whether the launch service provided by ANTRIX Corporation qualifies to be considered as export of services?

Ans. In terms of Section 13(9) of IGST Act, 2017, the place of supply of satellite launch service by ANTRIX Corporation to international customers would be outside India and wherever such supply qualifies all conditions specified under Section 2(6) of the IGST Act, 2017, would constitute as export of service and shall be zero rated.

Where satellite service was provided to a person in India, the place of supply of satellite launch service would be location of the recipient of services, provided the recipient is registered. In case where the recipient is not registered then place of supply is the place where such goods are handed over for their transportation.

(CBIC Circular No. 02/1/2017- IGST dated 27th September, 2017)

Q.38 What is the place of supply in case of supply of services relating to R&D, technical testing etc. to a person located outside India who sends the goods temporarily into India as the same are required by the supplier to provide the services?

Ans. In such cases, the general principle as per section 13(3)(a) is that the place of supply shall be the location where the services are actually performed. However, following proviso has been inserted to section 13(3)(a) vide the IGST (Amendment) Act, 2018. This amendment is yet to be brought into force.

However, in the case of services supplied in respect of goods which are temporarily imported into India for repairs or for any other treatment or process and are exported after such repairs or treatment or process without being put to any use in India, other than that which is required for such repairs or treatment or process, the default rule would be applicable i.e. the place of supply shall be the location of recipient of services.

Thus, in such cases, the place of supply shall be the location of recipient of services (Default provision in section 13(2)) i.e. outside India.

Q.39 How will the place of supply be determined wherein the goods are supplied from the premises of job worker?

Ans. The principal may supply, from the place of business/premises of a job worker on payment of tax within India. The place of supply would have to be determined in the hands of the principal irrespective of the location of the job worker’s place of business/premises.

Illustration: The principal is located in State A, the job worker in State B and the recipient in State C. In case the supply is made from the job worker’s place of business/premises, the invoice will be issued by the supplier (principal) located in State A to the recipient located in State C. The said transaction will be an inter-State supply. In case the recipient is also located in State A, it will be an intra-State supply.

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