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Place of Supply in relation to immovable property-Section 12(3) of IGST Act, 2017

C
CA PRADEEP GOYAL

My presentation with live examples to decide place of supply in relation to services related to immovable property. Very crucial as it is going to cost you by loss of input tax credit in most of the cases.

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POS SERVICES O F DIRECTLY in relation to immovable Property Including Services Provided by Architects Interior decorators Surveyors Engineers & other related experts Estate agents Any Service Provided By way of grant of RIGHT TO USE immovable property For CARRYING OUT or CO- ORDINATION of construction work Section 12(3) (a) By way of Lodging Accommodation by a Section 12(3) (b) Hotel Guest House Inn Home stay Club or Campsite (whatever name called) A House boat Any other vessel By way of Accommodation In any immovable property for organising any Section 12(3) (c) Marriage or reception or matters related thereto Official, social, cultural, religious or business function Services provided in relation to such function at such property Section 12(3) (d) Of any services ancillary to the services referred to in clauses (a), (b) and (c) Shall be the location at which the immovable property or boat or vessel, as the case may be, is located or intended to be located Immovable property or boat or vessel LOCATED IN INDIA
POS Provisotosection12(3) If the location of the immovable property or boat or vessel is located or intended to be located outside India, POS-location of the recipient The location of the usual place of residence of the recipient- Section 2(14)9d) of IGST Act Usual place of residence means (a) In case of an individual, the place where he ordinarily resides; (b) In other cases, the place where the person is incorporated or otherwise legally constituted. - Section 2(113) of CGST Act Immovable property or boat or vessel located outside India Explanationtosection12(3) Where the immovable property or boat or vessel is located in more than one State or Union territory, the supply of services shall be treated:- as made in each of the respective States or Union territories, in proportion to the value for services separately collected or determined in terms of the contract or agreement entered into in this regard or, in the absence of such contract or agreement, on such other basis as may be prescribed
Example:-1 Property owner is located in Delhi and taking services of Delhi based property dealer to arrange tenant for his commercial office situated in gurugram. Property dealer will charge Rs.50000 as his commission. Servivces
Example-2 Example-3 Architect Services pertaining to guest house Being constructed in Ahmedabad Sending managers to meet clients POS: Location of immovable property POS: MAHARASHTRA CGST+ Maharashtra SGST POS: Location of immovable property POS: GUJRAT IGST (Gujrat)
Example-4 Architect Services pertaining to office being Constructed in Singapore Example-5 Laying under-ground cables X PRADEEP GOYAL FCA POS: LOCATION OF RECIPIENT POS: HARYANA CGST+ HARYANA GST As per proviso to section 12(3) Proportionate allocation POS: As made in each of respective states or UT As per explanation to Section 12(3)

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Place of Supply in relation to immovable property-Section 12(3) of IGST Act, 2017

  • 1. POS SERVICES O F DIRECTLY in relation to immovable Property Including Services Provided by Architects Interior decorators Surveyors Engineers & other related experts Estate agents Any Service Provided By way of grant of RIGHT TO USE immovable property For CARRYING OUT or CO- ORDINATION of construction work Section 12(3) (a) By way of Lodging Accommodation by a Section 12(3) (b) Hotel Guest House Inn Home stay Club or Campsite (whatever name called) A House boat Any other vessel By way of Accommodation In any immovable property for organising any Section 12(3) (c) Marriage or reception or matters related thereto Official, social, cultural, religious or business function Services provided in relation to such function at such property Section 12(3) (d) Of any services ancillary to the services referred to in clauses (a), (b) and (c) Shall be the location at which the immovable property or boat or vessel, as the case may be, is located or intended to be located Immovable property or boat or vessel LOCATED IN INDIA
  • 2. POS Provisotosection12(3) If the location of the immovable property or boat or vessel is located or intended to be located outside India, POS-location of the recipient The location of the usual place of residence of the recipient- Section 2(14)9d) of IGST Act Usual place of residence means (a) In case of an individual, the place where he ordinarily resides; (b) In other cases, the place where the person is incorporated or otherwise legally constituted. - Section 2(113) of CGST Act Immovable property or boat or vessel located outside India Explanationtosection12(3) Where the immovable property or boat or vessel is located in more than one State or Union territory, the supply of services shall be treated:- as made in each of the respective States or Union territories, in proportion to the value for services separately collected or determined in terms of the contract or agreement entered into in this regard or, in the absence of such contract or agreement, on such other basis as may be prescribed
  • 3. Example:-1 Property owner is located in Delhi and taking services of Delhi based property dealer to arrange tenant for his commercial office situated in gurugram. Property dealer will charge Rs.50000 as his commission. Servivces
  • 4. Example-2 Example-3 Architect Services pertaining to guest house Being constructed in Ahmedabad Sending managers to meet clients POS: Location of immovable property POS: MAHARASHTRA CGST+ Maharashtra SGST POS: Location of immovable property POS: GUJRAT IGST (Gujrat)
  • 5. Example-4 Architect Services pertaining to office being Constructed in Singapore Example-5 Laying under-ground cables X PRADEEP GOYAL FCA POS: LOCATION OF RECIPIENT POS: HARYANA CGST+ HARYANA GST As per proviso to section 12(3) Proportionate allocation POS: As made in each of respective states or UT As per explanation to Section 12(3)