TMI BlogPlace of Supply of Goods and ServiceX X X X Extracts X X X X X X X X Extracts X X X X ..... at the point of consumption. So place of supply provision determines the place i.e. taxable jurisdiction where the tax should reach. The place of supply determines whether a transaction is intra-state or interstate. In other words, the place of Supply of Goods or services is required to determine whether a supply is subject to SGST plus CGST in a given State or union territory or else would attrac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e receiver and the service provided may not be ascertainable or may easily be suppressed as nothing tangible moves and there would hardly be a trail; (iii) For supplying a service, a fixed location of service provider is not mandatory and even the service recipient may receive service while on the move. The location of billing could be changed overnight; (iv) Sometime the same element ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g and would thus continue to pose newer challenges. For example, 15-20 years back no one could have thought of DTH, online information, online banking, online booking of tickets, internet, mobile telecommunication etc. Q 3. What proxies or assumptions in a transaction can be used to determine the place of supply? Ans. The various element involved in a transaction in services can be used a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h. GST collected on B2B supplies effectively create a liability for the government and an asset for the recipient of such supplies in as much as the recipient is entitled to use the input tax credit for payment of future taxes. For B2B transactions the location of recipient takes care in almost all situations as further credit is to be taken by recipient. The recipient usually further supplies to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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