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Place of supply, Goods and Services Tax - GST
|Place of supply|
1. ‘A’ is a person in Uttar Pradesh and ‘B’ is another person registered in Maharashtra.
2. ‘B’ has a commercial building such as Marriage Hall in Dubai
3. Marriage of the son of ‘A’ is organized in Lucknow but he wants reception to be held in Dubai in marriage hall of ‘B’
4. ‘B’ accepts request of ‘A’ and books his marriage hall in Dubai to ‘A’ for a consideration of Rs. 10,00,000 for one day along with all ancillary services.
5. Reception by ‘A’ was organized there and Rs. 10,00,000 was paid to ‘B’
Please answer the following questions
is there any tax liability?
If there is tax liability who will pay tax and what will be amount of tax?
What is place of supply of service in this case?
Posts / Replies
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As per Section 12 (3) of IGST Act, it is not export of service despite the status of GST as destination based consumption tax. In this scenario, all conditions of export are not fulfilled.. Place of supply is in India Since B is also registered with the department. B is provider of service and A is the receiver of service. B will collect GST from A and will deposit with the Govt.
In simple words, a person who, de facto, makes payment is service receiver and a person who receives payment is the service provider.
In such scenario, GST liability will exist as IGST. B is the supplier who would be liable to pay the tax.
I agree with Madam Shilpi Jain.