Place of Supply in GST

•

Understanding Place of Supply in GST 📍 A concept that decides which state gets the tax. Let’s break it down simply 👇 1/20

What is Place of Supply? It means the location where a service or goods is used or consumed. This determines who gets the GST. 2/20

Why does it matter? Because GST is destination-based. Tax goes to the state where consumption happens — not where the supplier is. 3/20

Types of Supply in GST: Same state → Intra-State Different states → Inter-State This classification depends on Place of Supply. 4/20

Intra-State vs Inter-State Intra-State → CGST + SGST Inter-State → IGST Getting POS right = correct tax. 5/20

Domestic vs Cross-Border Both in India → Domestic One outside India → Cross-border Different rules apply here. 6/20

Key Players in Place of Supply Location of Supplier (LS) Location of Recipient (LR) Place of Supply (POS) These decide the tax treatment. 7/20

General Rule for Services Usually, POS = Location of Recipient But… there are important exceptions. 8/20

Services linked to property 🏢 POS = Location of property Not where supplier or customer is. 9/20

Hotel & accommodation 🏨 POS = Where the hotel/property is located That’s where GST goes. 10/20

Performance-based services ✂️ Haircuts, gym, repairs etc. POS = Where the service is actually performed. 11/20

Event services 🎤 Concerts, exhibitions, fairs POS = Where the event takes place. 12/20

Transport services 🚚✈️ Goods → Where goods are handed over Passengers → Where journey begins POS depends on movement. 13/20

On-board services 🚆✈️ Food/services on train or flight POS = Place where journey starts. 14/20

Telecom & internet 📱 POS = Billing address or SIM location Important for telecom operators. 15/20

Banking & insurance 🏦 POS = Location of customer as per records Not necessarily where service is performed. 16/20

Government advertisement services 📢 POS is split across states Based on where ads are displayed. 17/20

Cross-border rules 🌍 Determine whether supply is: Export / Import / Taxable in India Mostly based on recipient location. 18/20

Biggest challenge ⚠️ Wrong POS = ❌ Wrong tax payment ❌ ITC issues ❌ Notices & litigation 19/20

Key takeaway ✅ If you understand where supply happens, you understand how GST applies. Place of Supply = Backbone of GST. 20/20