CBIC issued Circular No.203/15/2023-GST-Clarifying determination of place of supply in various cases

CBIC issued Circular No. 203/15/2023-GST dt. 27th Oct, 2023 - Clarifying determination of place of supply in various cases.

A. Place of supply in case of supply of service of transportation of goods, including through mail and courier:

Issue- After omission of subsection (9) of sec 13 of IGST Act, whether place of supply(POS) shall be determined as per sec 13(2) or sec 13(3) of the IGST Act?

Clarification- POS shall be determined as per default provision of sec 13(2) of the IGST Act and not as per performance based services under sub-section (3) of section 13 of IGST Act.

B. Place of supply in case of supply of services in respect of advertising sector:

Issue (Case 1)- What will be the POS, wherein supply (sale) of space or supply (sale) of rights to use the space on the hoarding/ structure (immovable property) belonging to vendor to the client/advertising company for display of their advertisement on the said hoarding/ structure?

Clarification- It shall be goverened by sec 12(3)(a) of IGST Act. And therefore, POS would be the location where such hoarding/ structure is located.

Issue (Case 2)- What will be the POS, wherein advertising company wants to

display its advertisement on hoardings/ bill boards at a specific location availing the services of a vendor. And vendor is responsible for

display of the advertisement of the advertisement company at the said location and vendor is in possession of the hoarding/structure at the said location?

Clarification - Services provided by the Vendor to advertising company

are purely in the nature of advertisement services and in respect of which Place of Supply shall be determined in terms of Section 12(2) of IGST Act.

C. Place of supply in case of supply of the “co-location services":

Issue- Whether supply of co-location services are renting of immovable property service (as it involves renting of space for keeping/storingcompany’s hardware/servers)?

Clarification- Co-location services are in the nature of “Hosting and information

technology (IT) infrastructure provisioning services and the POS 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.

However, where the agreement between the supplier and the recipient

is restricted to providing physical space on rent, POS shall be governed by sec 12(3)(a) of the IGST Act which is the location where the immovable property is located.

Circular-No-203-15-2023.pdf

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