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 ..... 2. In order to clarify the issue and to ensure uniformity in the implementation of the provisions of law across the field formations, the Commissioner of State Tax, in exercise of its powers conferred by section 168 of the Haryana Goods and Services Tax Act, 2017 (hereinafter referred to as HGST Act ), hereby clarifies the issues as under : Sl. No. Issue Clarification A. Place of supply in case of supply of service of transportation of goods, including through mail and courier 1. Sub-section (9) of section 13 of the Integrated Goods and Services Tax Act, 2017 (hereinafter referred to as IGST Act ) has been omi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sub-section was amended/omitted. Therefore, on the same principles as mentioned above, the place of supply in case of service of transportation of goods by mail or courier will continue to be determined by the default rule under section 13(2) of the 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. Advertisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ings/bill boards at a specific location availing the services of a vendor. The responsibility of arranging the hoardings/bill boards lies with the vendor who may himself own such structure or may be taking it on rent or rights to use basis from another person. The vendor is responsible for display of the advertisement of the advertisement company at the said location. During this entire time of display of the advertisement, the vendor is in possession of the hoarding/structure at the said location on which advertisement is displayed and the advertising company is not occupying the space or the structure.In this case, what will be the place of supply of such services provided by the vendor to the advertising company ? per se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /taken on rent by him at the specified location. Therefore, such services provided by the Vendor to advertising company are purely in the nature of advertisement services in respect of which Place of Supply shall be determined in terms of Section 12(2) of the IGST Act. C. Place of supply in case of supply of the co-location 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. 3.1 It is clarified that the Co-location services are in the nature of Hostin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... related hardware, etc. 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 (a) of sub-section (3) of section 12 of the IGST Act but the same shall be determined by 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. 3.3 However, in cases where the agreement between the supplier and the recipient is restricted to providing physical space on rent along with basic infrastructure, without com ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
