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Place of Supply in GST
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25 days ago
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Understanding Place of Supply in GST π A concept that decides which state gets the tax. Letβs break it down simply π 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 β not where the supplier is. 3/20
Types of Supply in GST: Same state β Intra-State Different states β Inter-State This classification depends on Place of Supply. 4/20
Intra-State vs Inter-State Intra-State β CGST + SGST Inter-State β IGST Getting POS right = correct tax. 5/20
Domestic vs Cross-Border Both in India β Domestic One outside India β 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 π’ POS = Location of property Not where supplier or customer is. 9/20
Hotel & accommodation π¨ POS = Where the hotel/property is located Thatβs where GST goes. 10/20
Performance-based services βοΈ Haircuts, gym, repairs etc. POS = Where the service is actually performed. 11/20
Event services π€ Concerts, exhibitions, fairs POS = Where the event takes place. 12/20
Transport services πβοΈ Goods β Where goods are handed over Passengers β Where journey begins POS depends on movement. 13/20
On-board services πβοΈ Food/services on train or flight POS = Place where journey starts. 14/20
Telecom & internet π± POS = Billing address or SIM location Important for telecom operators. 15/20
Banking & insurance π¦ POS = Location of customer as per records Not necessarily where service is performed. 16/20
Government advertisement services π’ POS is split across states Based on where ads are displayed. 17/20
Cross-border rules π Determine whether supply is: Export / Import / Taxable in India Mostly based on recipient location. 18/20
Biggest challenge β οΈ Wrong POS = β Wrong tax payment β ITC issues β Notices & litigation 19/20
Key takeaway β If you understand where supply happens, you understand how GST applies. Place of Supply = Backbone of GST. 20/20