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Brief on Applicability of Sec 10 to Sec 12 of IGST Act (in Hindi)
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CA Arun Chhajer
Myself a Chartered Accountant (CA) & Company Secretary (CS) & having the 10 years experience. I have worked with TCS ICICI Bank DK etc. Now

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  1. Brief on Sec 10 to Sec 13 Place of Supply of Goods /Summary CA & CS Arun Chhajer (Jain) New Delhi


  2. Determination of place of supply of goods and services SN Place of supply of goods Place of supply of services 1 Section 10: goods other than Section 12: services where the supply of goods imported into, or exported from India location of supplier of service and the location of the recipient of services is in India 2 Section 11: goods imported Section 13: services where the into, or exported from India location of supplier of service or location of the recipient of services is outside India CA & CS Arun Chhajer (Jain) New Delhi


  3. Place of supply of goods other than supply of goods imported into, or exported from India. Sec 10 of the IGST Act (1) The place of supply of goods, other than supply of goods imported into, or exported from India, shall be as under,- (a) where the supply involves movement of goods, whether by the supplier or the recipient or by any other person, the place of supply of such goods shall be the location of the goods at the time at which the movement of goods terminates for delivery to the recipient; (b) where the goods are delivered by the supplier to a recipient or any other person on the direction of a third person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to the goods or otherwise, it shall be deemed that the said thirc person has received the goods and the place of supply of such goods shall be the principal place of business of such person; (c) where the supply does not involve movement of goods, whether by the supplier or the recipient, the place of supply shall be the location of such goods at the time of the delivery to the recipient; (d) where the goods are assembled or installed at site, the place of supply shall be the place of such installation or assembly; (e) where the goods are supplied on board a conveyance, including a vessel, an aircraft, a train or a motor vehicle, the place of supply shall be the location at which such goods are taken on board. (2) Where the place of supply of goods cannot be determined, the place of supply shall be determined in such manner as may be prescribed. CA & CS Arun Chhajer (Jain) New Delhi


  4. Determination of place of supply of goods Involves movement of goods Sec Circumstances Place of supply 10(1) (a) Supply Involves Movement of Goods Location of the goods at the time of at By the supplier; or -By the recipient; or By any other person. which the movement of goods terminates for delivery to the recipient. Clause (a) of sec 10(1) provides that where the supply involves movement of goods, the place of supply shall be the location of Goods where the movement terminates for delivery. The movement can either be made by supplier or recipients or any other Person. The same can be explained by following example. X located in Delhi, places an order on Y in Punjab to deliver certain goods in Delhi. Y arranges for the transport and send the goods to Delhi. In the given case, PoS would be Delhi, where the movement terminates for delivery and as location of supplier and place of supply are in different states. X will be charge IGST on the transaction CA & CS Arun Chhajer (Jain) New Delhi


  5. Determination of place of supply of goods imported into, or exported from India Involves movement of goods. Place of supply Nature of GST Location of supplier Delhi Location of recipient Delhi Termination of movement Case payable CGST+SGST at Delhi 1.Goods dispatched by supplier 2.Goods dispatched by supplier 3.Goods collected by recipient Delhi Delhi Delhi Haryana Haryana Haryana IGST at Delhi Delhi Haryana Haryana Haryana IGST at Delhi Note it is importantto mention that the suppliers are mandatorily required to state the name and address of the recipient if invoice value exceeds INR 50000/- CA & CS Arun Chhajer (Jain) New Delhi


  6. Supply does not involve movement of goods-10(1) (c ) IGST Act Circumstances Place of supply 10(1) Supply does not involve movement of goods Location of such goods at the time of the delivery to the recipient. Illustrations 1. A job worker develops a mould for the manufacture of goods for the raw material supplier of U.P. and retains the mould in its place itself for manufacture of goods. The mould developed by the job worker is sold for Rs.2 Lakh to the raw material supplier but the mould remained with the job worker for manufacture of goods. In this case the supply is covered within sec 10(1)(c) where the supply does not involves movement of goods, the POS shall be the location of the goods at the time of delivery of the recipient. Here the LOS is Delhi ands POS is job workers premises at Delhi. It is intra-state supply. CA & CS Arun Chhajer (Jain) New Delhi


  7. Illustrations Supply does not involve movement of goods Mr. X of Delhi has taken on rent a generator from M/s ABC of UP in April 2017. in Oct 2017, Mr. X purchase the generator from ABC. In this case since supply does not involve movement of goods, POS shall be the location of goods at the time of delivery to the recipient, that is Delhi. LOS qua ABC is UP. Therefore it is an inter-state supply, taxable in UP. M/s. ABC of Delhi having 5000 plastic bucket stored in public warehouses, at Haryana has sold all the buckets to M/s PQR Delhi, who also stores goods in the same godown at haryana, and the ownership will be transferred to POR. In this case, since supply does not involve movement of goods, the POS shall be location of goods at the time of delivery to the recipient; that is, Haryana. LOS ABC is at Delhi. Therefore it is an inter-state supply; taxable in delhi CA & CS Arun Chhajer (Jain) New Delhi


  8. Goods are assembled or installed at site-sec 10(1)(d) of IGST Circumstances Where the goods are assembled or installed at site. For example installation of plant and machinery Place of supply Place of such installation or assembly. Sec 10(1)(d) The identifying element for application of this provision is installation or assembly either by the supplier or by somebody on his behalf as typically happens in case of installation of plant and machinery requiring expertise to make it operational. This applies even when the element of installation is not substantial Suppose, while entering into two separate contracts for goods and services, a supplier sends components separately from, say Haryana; which are finally assembled in, say Delhi. In such case, the POS of such components and the goods which are assembled at site will be separately determined. Foe the goods: it would fall under sec 10(1)(a), and will be place from where they are finally delivered. POS of the assembled goods will be place where the goods are assembled. However, for the components, he might have to pay tax at the time of removal itself if the agreement between the parties so specified. CA & CS Arun Chhajer (Jain) New Delhi


  9. Goods are goods are supplied on board a conveyance assembled or installed at site-Sec 10(1) (e) of IGST Place of supply Location at which such goods are taken on board Sec Circumstances 10(1) (e) Where the goods are supplied on board a conveyance, such as vessel, aircraft, train or motor vehicle. In such cases, there are two supplies supply of goods 'to' the operator of the conveyance; and supply 'by' the operator to the passenger during the journey 'in' the conveyance. The place of supply appointed under this clause is in respect of the second limb which is supply by the operator of the conveyance during its journey to the passenger. Conveyance includes vessel, aircraft, train or motor vehicle. The place of supply in respect of first limb of supply will continue to be determined by the provisions of this action CA & CS Arun Chhajer (Jain) New Delhi


  10. Where POS of goods cannot be determined-sec 10(2) of IGST Act Place of supply To be determined in such manner as may be prescribed Sec Circumstances Where the POS of goods cannot be determined 10(2) No notification has been issued prescribing the cases under sec 10(2) CA & CS Arun Chhajer (Jain) New Delhi