TMI BlogClarification regarding determination of place of supply in various casesX X X X Extracts X X X X X X X X Extracts X X X X ..... ircular issued by the CBIC is being made applicable, mutatis mutandis, in implementation of the MGST Act, 2017. Copy of the referred CBIC circular is attached herewith. This Trade Circular is clarificatory in nature. Difficulty if any, in the implementation of this Circular may be brought to the notice of the office of the Commissioner of State Tax, Maharashtra. (Rajeev Kumar Mital) Commissioner of State Tax, Maharashtra State, Mumbai Circular No. 203/15/2023-GST F. No. 20/06/22/2023-GST-CBEC Government of India Ministry of Finance Department of Revenue Central Board of Indirect Taxes Customs, GST Policy Wing ***** New Delhi, dated the 27th October, 2023 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2023. After the said amendment, doubts have been raised as to whether the place of supply in case of service of transportation of goods, including through mail and courier, in cases where location of supplier of services or location of recipient of services is outside India, will be determined as per sub-section (2) of section 13 of IGST Act or will be determined as per sub-section (3) of section 13 of IGST Act. 1.1 Place of supply of services where location of supplier or location of recipient is outside India is determined as per section 13 of the IGST Act. Sub - section (9) of section 13 of IGST Act provided that where one of the supplier of the services or the recipient of services is located outside Indi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of IGST Act i.e. in cases where location of recipient of services is available, the place of supply of such services shall be the location of recipient of services and in cases where location of recipient of services is not available in the ordinary course of business, the place of supply shall be the location of supplier of services. B. Place of supply in case of supply of services in respect of advertising sector 2. Advertising companies are often involved in procuring space on hoardings/ bill boards erected and mounted on buildings/land, in different States, from various suppliers ( vendors ) for providing advertisement services to its corporate clients. There may be va ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etermined as below: 2.2 Place of supply in Case (i) : The hoarding/structure erected on the land should be considered as immovable structure or fixture as it has been embedded in earth. Further, place of supply of any service provided by way of supply (sale) of space on an immovable property or grant of rights to use an immovable property shall be governed by the provisions of section 12(3)(a) of IGST Act. As per section 12(3)(a) of IGST Act, the place of supply of services directly in relation to an immovable property, including services provided by architects, interior decorators, surveyors, engineers and other related experts or estate agents, any service provided by way of grant of rights to use immovable property or for carryi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... services 3. Co-location is a data center facility in which a business/company can rent space for its own servers and other computing hardware along with various other bundled services related to Hosting and information technology (IT) infrastructure. A business/company who avails the co-location services primarily seek security and upkeep of its server/s, storage and network hardware; operating systems, system software and may require to interact with the system through a web-based interface for the hosting of its websites or other applications and operation of the servers. In this respect, various doubts have been raised as to i. whether supply of co-location services are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and power supply but it also involves the supply of various services by the supplier related to hosting and information technology infrastructure services like network connectivity, backup facility, firewall services, and monitoring and surveillance service for ensuring continuous operations of the servers and related hardware, etc. which are essential for the recipient business/company to interact with the system through a web based interface relating to the hosting and operation of the servers. 3.2 In such cases, supply of colocation services cannot be considered as the services of supply of renting of immovable property. Therefore, the place of supply of the colocation services shall not be determined by the provisions of clause ..... X X X X Extracts X X X X X X X X Extracts X X X X
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