Time, value and Place of Supply Under GST

1. Time, value and Place of Supply Under GST GST Act By CA Bhupendra Agarwal

2. Content • Relevance of “Place of Supply” • Place of Supply • Goods • Services • Value of Supply • Time of Supply • Issues

3. Type of Taxes in ‘GST’ CGST SGST (s) IGST CGST / IGST Act 2017 to extend to the whole of India except the State of Jammu and Kashmir SGST Act of each State to extend to respective State

4. Place of Supply - DESTINATION • Supply involves Import into India • IGST on import of Goods / Services • Supply involves Export from India • Exemption from IGST on Goods / Services • Supply involves Intra State movement • CGST + SGST • Supply involves Inter State movement • IGST

5. Importance of Place of Supply • Export of goods • Taking goods out of India to a place outside India • Import of goods • Bringing goods into India from a place outside India • Export of services • Supplier of service is located in India • Recipient of service is located outside India • Place of supply of service is outside India Contd..

6. Importance of Place of Supply • Import of services • Supplier of service is located outside India • Recipient of service is located in India • Place of supply of service is in India

7. Inter-State Supply – IGST • Only Parliament to make laws for GST on inter- state supply of goods or of services or both – Article 246A(2) • Integrated GST (‘IGST’) on inter- state supply including import to belevied and collected by Central Government – Article 263A(1) • To formulate principles for determining the place of supply and when a supply of goods or of services or both takes place in the course of inter-state trade or commerce – Article 269A(2) • GST is destination based Consumption tax unlike VAT / CST – Origin • Continues to be collected at ORIGIN but to be transferred to destination state • Central Govt. to transfer IGST (State part) to consumption state

8. CGST / SGST - ACT • Address of delivery • Address of the recipient of goods / services indicated on the tax invoice for delivery of goods / services • Address on record • Address of the recipient as available in the records of the supplier

9. Place of Supply of “Goods” Other than Import into or Export from India • Supply involves movement of goods • Location of the goods at the time at which the movement of goods terminates for delivery to the recipient • Supply does not involve movement of goods • Location of such goods at the time of delivery to the recipient • Transfer before or during movement of goods • Place of supply of such goods shall be the principal place of business of such person (transfer of documents of title to the goods)

10. Place of Supply of “Goods” • Goods assembled / installed at site • Place of such installation or assembly • Goods supplied on board a conveyance - vessel, aircraft, train or motor vehicle • Location at which such goods are taken on board • Place of supply cannot be determined • Such manner as may be prescribed

11. Place of Supply of “Goods” Import of goods into India Location of the Importer Export of goods from India Location outside India

12. Place of Supply of “Services” FOR ALL SERVICES EXCEPT SPECIFIED SERVICES Made to a Registered person (B2B) Location of such person Made to a person other than Registered person (B2C) Location of the recipient if address on record exists Other cases :Location of the provider of service

13. Place of Supply of “Services” Location at which the immovable property is located • Immovable property (various activity) • Lodging accommodation • Accommodation for Marriage / Reception • Ancillary activity to above • Admission to a cultural, artistic, sporting, scientific, educational, or entertainment event or amusement park • Location of property / vessel outside India – location of the recipient

14. Place of Supply of “Services” Location at which the Service is “Performed” restaurant and catering services personal grooming fitness beauty treatment health service including cosmetic and plastic surgery

15. Place of Supply of “Services” Transportation of “Goods” Made to a Registered person (B2B) Location of such person Made to a person other than Registered person (B2C) Location at which goods handed over for transportation

16. Place of Supply of “Services” Passenger transportation service Made to a Registered person (B2B) Location of such person Made to a person other than Registered person (B2C) Location where passenger embarks on the conveyance Services on board a conveyance Location of the first scheduled point of departure

17. Place of Supply of “Services” Telecommunication, Cable, DTH, Broadcasting • Fixed telecommunication line, leased circuits, internet leased circuit, cable or dish antenna • Location where the above is physically installed for receipt of services Mobile connection / internet services • Post paid - Billing address of the recipient of services • Pre-paid – Address of re-seller in Supplier record - Final subscriber – Location of sale of vouchers / payment recd - Internet payment – Recipient address as per Supplier record

18. Place of Supply of “Services” Banking / Financial services including stock broking Location of the recipient of services on the records of the supplier of services Insurance services Registered person – Location of such person Others – Location of recipient as per record of supplier Advertisement services to Government - Amount attributable to service provided by way of dissemination in the respective States

19. Time of Supply of “Goods” A. Registered personsupplying taxable goods to issue invoice either before or at the time of :- Removal of goods for supply to the recipient; or Delivery of goods or making available to the recipient, in any other case Govt. to specify categories of goods and supplies for which tax invoice to be issued within such time and manner Invoice to contain description, quantity and value of goods and tax charged and other particulars to be prescribed

20. Time of Supply of “Goods” B. Liability to pay tax to arise at the Time of supply Time of supply earlier of the following DATES :- • Date of issue of invoice by the supplier • Last date for issuance of invoice as prescribed by Govt. • Date on which supplier receives the payment for supply • Payment entered in books of accounts of supplier or amount credited to his bank account, whichever is earlier

21. Time of Supply of “Goods” Payment up to Rupees one thousand received in excess of invoice amount, time of supply be the date of issue of invoice for such excess amount Time of supply for interest, late fee or penalty for delayed payment of consideration shall be the date of receipt of such amount by supplier

22. Time of Supply of “Goods” C. Liability to pay tax on Reverse charge basis Time of supply earlier of the following DATES :- • Date of receipt of goods • Date of payment to the Supplier • Payment entered in books of accounts of recipient or amount debited to his bank account, whichever is earlier • Date immediately following thirty days from the date of issue of invoice by the supplier

23. Time of Supply of “Goods” D. Liability to pay tax on Voucher Time of supply earlier of the following DATES :- • Date of issue of Voucher, if supply is identifiable at that point • Date of redemption of voucher

24. Time of Supply of “Services” Date of issue of invoice within prescribed period or date of receipt of payment which is earlier Date of provision of service (invoice not issued within prescribed period) or date of receipt of payment which is earlier Date on which recipient shows receipt of services in his books of accounts , if above is not applicable Similar provision for payment received in excess up to Rupees one thousand

25. Time of Supply of “Services” Liability to pay tax on Reverse charge basis Time of supply earlier of the following DATES :- • Date of payment to the Supplier • Payment entered in books of accounts of recipient or amount debited to his bank account, whichever is earlier • Date immediately following sixty days from the date of issue of invoice by the supplier • Date of entry of receipt of services in books of accounts of recipient

26. Value of taxable “Supply” • Transaction value when price is sole consideration and parties are not related • Value to include • Any taxes charged separately other than GST • Amount liable to be paid by supplied but paid by recipient • Incidental expenses charged by the supplier in relation to amount incurred at the time of or before delivery • Interest, late fee for delayed payment • Value not to include discount

27. Thank You email: bhupendra.agarwal@karvy.com Mobile: 99597 30001