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GST – Clarification regarding determination of place of supply in various cases viz. transport of goods, supply of sale of space, co-location services etc. [Circular attached]

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03-Nov-2023 16:37:35

Circular No. 203/15/2023 – GST dated 27th October, 2023

Key Pointers –

In cases of services of transportation of goods, other than through mail and courier, where location of supplier and recipient of services is outside India, the place of supply will be determined by section 13(2) of IGST Act. Further where the location of recipient of services is not available , the place of supply shall be the location of supplier of services. The same will be applicable in cases of service of transportation of goods by mail or courier.
The place of supply of service provided by way of supply of sale of space on hoarding/ structure for advertising would be the location where such hoarding/ structure is located. Further if the advertising company displays its advertisement on hoardings/ bill boards at a specific location, where there is no sale of space on hoarding/ structure, then Place of Supply shall be determined in terms of Section 12(2) of IGST Act.
Co-location services are “Hosting and information technology (IT) infrastructure provisioning services”. It involves providing of a physical space, security service, fire protection system and power supply but also involves the supply of various services by the supplier like network connectivity, backup facility etc. which are essential for the recipient business/company to interact with the system through a web based interface.
Such supply of colocation services cannot be considered as the services of supply of renting of immovable property. Then the place of supply will be determined under sub-section (2) of Section 12 of the IGST Act i.e. location of recipient of co-location service.
In case restrictions are provided in relation to supply of colocation services by an agreement, then the said supply of services shall be considered as the supply of the service of renting of immovable property and place of supply will be determined by the provisions of clause (a) of sub-section (3) of Section 12 of the IGST Act which is the location where the immovable property is located.