A clarification for the determination of the place of supply has been provided by the Central Board of Indirect Taxes and Customs (CBIC).
Through the trade and field formations, the board has obtained the representations asking for clarifications about the determination of the place of supply for the case of the supply of the service or the transportation of the goods via mail and courier, supply of services about the advertising sector and supply of the co-location services.
The place of supply of services where the location of the supplier or the location of the receiver is not in India and is directed under section 13 of the IGST Act, as per the clarification of the board. Sub-section (9) of section 13 of the IGST Act furnished that one of the suppliers of the services or the receiver of the services is not located in India, the place of supply of the services of the goods transportation excluding the way of mail or courier will be the location of the same goods. From section 162 of the Finance Act, 2023 the sub-section has been removed that shall come into force from the date 1/10/2023.
Post enactment of the amendment the place of the supply of services of the goods transportation excluding the mail and courier for the cases in which the location of the supplier of the services or the receiver location of the services is not in India and shall get determined via the default rule under section 13(2) of IGST Act and not as performance-based services under sub-section (3) of section 13 of IGST Act.
For the cases in which the receiver location of the services is available, the place of supply of services will be the location of the receiver of the services and for the cases in which the receiver location of services is not been available in the ordinary business operations, the place of supply will be the supplier of services location.
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The supply of service place furnished via the sale of the space on hoarding or structure for the advertising or to the allotment of the right to use the hoarding or structure for the advertising for the case shall be the place in which the same hoarding or structure is been located.
The vendor who provides the services to the advertising companies has the nature of the advertisement services for which the place of supply will be specified as per section 12(2) of the IGST Act.
As per the provisions of clause (a) of sub-section (3) of Section 12 of the IGST Act the place of supply of the colocation services will not be specified however that will be specified via the default place of supply provision under sub-section (2) of Section 12 of the IGST Act i.e. location of recipient of co-location service.
