GST Place of Supply (Chapter 4) Vocabulary

Comprehensive vocabulary flashcards covering the concepts, statutory sections, and rules for determining the Place of Supply of goods and services under the IGST Act, 2017.

Destination-based tax

A tax levied at the place where the goods or services are consumed, rather than the place where they are produced.

Place of Supply

The location where a supply is consumed, as referred to in Chapter $V$ of the Integrated Goods and Services Tax Act, $2017$; it determines the jurisdiction where tax revenue should reach.

Section 10(1)(a)

The rule for supply involving movement of goods where the place of supply is the location of the goods at the time at which the movement terminates for delivery to the recipient.

Section 10(1)(b) ('Bill to Ship to')

A tripartite arrangement where goods are delivered to a recipient on the instruction of a third person; the place of supply is deemed to be the principal place of business of that third person.

Section 10(1)(c)

The rule for supply not involving movement of goods where the place of supply is the location of such goods at the time of delivery to the recipient.

Section 10(1)(d)

The rule for goods assembled or installed at site where the place of supply is the place of such installation or assembly.

Section 10(1)(e)

The rule for goods supplied on board a conveyance where the place of supply is the location at which such goods are taken on board.

Continuous journey

A journey for which a single or multiple tickets/invoices are issued at the same time and which involves no stopover between any of the legs [Section $2(3)$].

Stopover

A place where a passenger can disembark either to transfer to another conveyance or break his journey for a certain period in order to resume it at a later point of time.

Conveyance

Includes a vessel, an aircraft, and a vehicle [Section $2(34)$].

Fixed establishment

A place other than the place of business characterized by a sufficient degree of permanence and suitable structure in terms of human and technical resources to supply or receive services [Section $2(7)$].

Location of the recipient of services

Defined as the place of business (if registered), a fixed establishment elsewhere, the establishment most directly concerned with the receipt, or the usual place of residence [Section $2(14)$].

Location of the supplier of services

Defined as the place of business (if registered), a fixed establishment, the establishment most directly concerned with the provision of supply, or the usual place of residence [Section $2(15)$].

Place of business

Includes locations from where business is ordinarily carried on (warehouses, godowns), where books are maintained, or where business is engaged through an agent [Section $2(85)$].

Recipient

The person liable to pay consideration, the person to whom goods are delivered/possession is given (if no consideration), or the person to whom service is rendered (if no consideration) [Section $2(93)$].

Supplier

The person supplying goods or services, including an agent acting on their behalf; also encompasses persons organizing supplies of specified actionable claims through digital platforms [Section $2(105)$].

Inter-State supply

A supply where the location of the supplier and the place of supply are in two different States, two different Union territories, or a State and a Union territory [Section $7$].

Intra-State supply

A supply where the location of the supplier and the place of supply are in the same State or same Union territory [Section $8$].

Territorial waters

Coastal waters extending up to $12$ nautical miles from the baseline; the coastal State/UT nearest to the baseline is deemed the location of supplier or place of supply [Section $9$].

B2B (Business to Business)

Transactions where the recipient is a registered person eligible to take input tax credit (ITC).

B2C (Business to Consumer)

Transactions where the recipient is an unregistered person or a consumer who cannot take input tax credit (ITC).

Section 12(2) General Rule (Services)

For B2B supplies, the location of the recipient; for B2C supplies, the location of the recipient if the address exists on record, otherwise the location of the supplier.

Section 12(3) (Immovable Property)

The place of supply for services directly related to immovable property is where the property/vessel is located or intended to be located. If outside India, it is the location of the recipient.

Section 12(4) (Personal Performance)

The place of supply for restaurant, catering, personal grooming, beauty, and health services is where the services are actually performed.

Section 12(10) (Services on Board)

The place of supply for services supplied on board a conveyance is the location of the first scheduled point of departure of that conveyance for the journey.

Section 12(12) (Financial Services)

The place of supply for banking or stock broking services is the location of the recipient on the records of the supplier; if not available, the location of the supplier.