Place of supply of services where location of supplier or location of recipient is outside India

Posted on 10 June 2022 Category : GST

Sec 13 of IGST Act, 2017, Place of supply of services where location of supplier or location of recipient is outside India

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The below post explains about Place of supply of services where location of supplier or location of recipient is outside India under section 13 of IGST Act,2017.

Section 13 of IGST Act, 2017 explains Place of supply of services where location of supplier or location of recipient is outside India as below: (The amendments if any will also be updated here soon).

The extract of Section 13 of IGST Act,2017 quoted below:

13 Place of supply of services where location of supplier or location of recipient is outside India

13. (1) The provisions of this section shall apply to determine the place of supply of

services where the location of the supplier of services or the location of the recipient of

services is outside India.

(2) The place of supply of services except the services specified in sub-sections (3)

to (13) shall be the location of the recipient of services:

Provided that where the location of the recipient of services is not available in the

ordinary course of business, the place of supply shall be the location of the supplier of

services.

(3) The place of supply of the following services shall be the location where the

services are actually performed, namely:—

(a) services supplied in respect of goods which are required to be made

physically available by the recipient of services to the supplier of services, or to a

person acting on behalf of the supplier of services in order to provide the services:

Provided that when such services are provided from a remote location by way

of electronic means, the place of supply shall be the location where goods are situated

at the time of supply of services:

Provided further that nothing contained in this clause shall apply in the case

of services supplied in respect of goods which are temporarily imported into India

for repairs and are exported after repairs without being put to any other use in India,

than that which is required for such repairs;

(b) 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.

(4) The place of supply of services supplied directly in relation to an immovable

property, including services supplied in this regard by experts and estate agents, supply of

accommodation by a hotel, inn, guest house, club or campsite, by whatever name called,

grant of rights to use immovable property, services for carrying out or co-ordination of

construction work, including that of architects or interior decorators, shall be the place

where the immovable property is located or intended to be located.

(5) The place of supply of services supplied by way of admission to, or organisation

of a cultural, artistic, sporting, scientific, educational or entertainment event, or a celebration,

conference, fair, exhibition or similar events, and of services ancillary to such admission or

organisation, shall be the place where the event is actually held.

(6) Where any services referred to in sub-section (3) or sub-section (4) or

sub-section (5) is supplied at more than one location, including a location in the taxable

territory, its place of supply shall be the location in the taxable territory.

(7) Where the services referred to in sub-section (3) or sub-section (4) or

sub-section (5) are supplied in more than one State or Union territory, the place of supply

of such services shall be taken as being in each of the respective States or Union territories

and the value of such supplies specific to each State or Union territory shall be 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 basis as may be prescribed.

(8) The place of supply of the following services shall be the location of the supplier

of services, namely:––

(a) services supplied by a banking company, or a financial institution, or a

non-banking financial company, to account holders;

(b) intermediary services;

excluding aircrafts and vessels, up to a period of one month.

Explanation.––For the purposes of this sub-section, the expression,––

(a) “account” means an account bearing interest to the depositor, and

includes a non-resident external account and a non-resident ordinary account;

(b) “banking company” shall have the same meaning as assigned to it

under clause (a) of section 45A of the Reserve Bank of India Act, 1934;

in clause (c) of section 45-I of the Reserve Bank of India Act, 1934;

(d) “non-banking financial company” means,––

(i) a financial institution which is a company;

(ii) a non-banking institution which is a company and which has as

its principal business the receiving of deposits, under any scheme or

arrangement or in any other manner, or lending in any manner; or

(iii) such other non-banking institution or class of such institutions,

as the Reserve Bank of India may, with the previous approval of the

Central Government and by notification in the Official Gazette, specify.

(9) 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.

(10) The place of supply in respect of passenger transportation services shall be the

place where the passenger embarks on the conveyance for a continuous journey.

(11) The place of supply of services provided on board a conveyance during the

course of a passenger transport operation, including services intended to be wholly or

substantially consumed while on board, shall be the first scheduled point of departure of

that conveyance for the journey.

(12) The place of supply of online information and database access or retrieval

services shall be the location of the recipient of services.

Explanation.––For the purposes of this sub-section, person receiving such services

shall be deemed to be located in the taxable territory, if any two of the following noncontradictory

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;

(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.

(13) 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.

The above information clarifies about Place of supply of services where location of supplier or location of recipient is outside India under section 13 of IGST Act,2017.

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