Place of Supply —
Services
Section 12, IGST Act
Unlike goods, determining where a service is “supplied” is far more complex. Section 12 of the IGST Act lays down 13+ specific rules — from immovable property and performance-based services to events, transport, insurance and government advertisements.
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Place of Supply for Services — Why It’s Different
While Place of Supply for goods is relatively straightforward (it follows the physical movement of goods), services are intangible — they leave no physical trail. Section 12 of the IGST Act, 2017 provides specific rules for each category of service, applicable when both the supplier and recipient are located in India.
Concept Cards — All Rules Under Sec 12
General Rule — When No Specific Rule Applies (Rules 3–14)
When none of the specific rules (Sec 12(3) to 12(14)) apply, the General Rule governs. POS depends on the registered status of the recipient.
💡 Applies to: CFO Services, Virtual Services, Tax Consultants etc.
Any service provided by a professional where no specific rule applies will fall back to this General Rule.
Immovable Property Related Services
Services that are directly related to or in respect of immovable property.
POS = Hyderabad — Location of Immovable Property
“Performance” Based Services
Services that require the physical presence of the recipient — e.g., beauty, health, fitness, wellness services.
POS = Jaipur — Where Service is Physically Performed
Training / Performance Appraisal
Training services where POS depends on whether recipient is registered or not.
① POS = Pune | ② POS = Goa
Admission to Events + Ancillary Services
Admission to cultural, artistic, sports, scientific events AND ancillary services like security, ticketing, catering at the event gate.
POS = Bengaluru — Location of the Event
Organisation of Events / Sponsorship
Services related to organising or sponsoring an event (not admission).
Event in India → Location of Event | Event Abroad → Client’s Location
Transportation of Goods
Services of transporting goods by any mode — road, rail, sea, air.
Reg. → Recipient’s Location | Unreg. → Handover Point
Passenger Transport Services
Travel agency books transport for passengers. POS differs based on registration status.
Reg. → Registered Location | Unreg. → Boarding Point
Services on Board a Conveyance
Services provided to passengers while on board a train, ship, aircraft, or bus during the journey.
POS = Bhopal — 1st Scheduled Departure Point
Insurance Services
POS for insurance policies depends on the registration status of the insured person.
Reg. → Location of Recipient | Unreg. → Address in Supplier’s Record
Advertisement Services to Government Bodies
When an advertisement service is provided to the Government of India or a State Government and the advertisement is broadcast across multiple states, the POS is apportioned across those states in proportion to the viewership/reach specified in the contract.
📺 Example: GOI runs “Swachh Bharat” ad — Contract specifies Viewership
POS = Apportioned across states in ratio 40 : 35 : 25 as per contract viewership
Special Case — Export of Services
EV Case — Services Rendered to Overseas Entities
The issue was whether services rendered by EV to overseas entities qualify as Export of Services — which are zero-rated under GST.
Key distinction made by the Court:
✅ Services directly rendered (not arranged / not facilitated) to overseas entities = ≠ Intermediary. Since the service provider was directly rendering services (not merely arranging or facilitating), they do not fall under “intermediary” category.
Special Rules for Multi-State Situations
📋 Realty / Real Estate Services
- POS is determined as per Agreement / Contract between the parties.
- POS split is based on the terms defined in the agreement — could be by area, time period, night stays, or other proportionate measures.
- Apply relevant IGST Rule [4 or 5] for apportionment.
- Proportionate basis examples: Night stay allocation, Area (sq ft), Time period of use.
Quick Reference — All Rules Summary
| Section | Service Type | Place of Supply | Key Example |
|---|---|---|---|
| 12(2) | General Rule (default) | Location of Recipient (Reg.) / Address on Record (Unreg.) / Supplier’s Place (No address) | Tax Consultant → Registered Client in Mumbai: POS = Mumbai |
| 12(3) | Immovable Property Services | Location of the Property | Architect (Chennai) → Building in Hyderabad: POS = Hyderabad |
| 12(4) | Performance-Based Services | Where service is physically performed | Spa in Jaipur: POS = Jaipur |
| 12(5) | Training / Appraisal | Reg. → Recipient’s location; Unreg. → Where performed | Training to Reg. ABC (Pune): POS = Pune |
| 12(6) | Admission to Events + Ancillary | Location of the Event | Music Event in Bengaluru: POS = Bengaluru |
| 12(7) | Organisation of Events / Sponsorship | India Event → Location of Event; Abroad → Client’s location | Seminar in Noida: POS = Noida |
| 12(8) | Transportation of Goods | Reg. → Recipient; Unreg. → Handover point (from 1.10.23) | Delhi→Chennai (Reg.): POS = Delhi |
| 12(9) | Passenger Transport | Reg. → Registered location; Unreg. → Boarding point | Mum→Kol (Reg.): POS = Mumbai |
| 12(10) | Services on Board Conveyance | 1st Scheduled Departure Point | Movies on Bhopal–Varanasi train: POS = Bhopal |
| 12(13) | Insurance Services | Reg. → Recipient; Unreg. → Supplier’s record address | Health policy to Reg. factory in Gujarat: POS = Gujarat |
| 12(14) | Advertisement to Govt Bodies | Apportioned across states per contract viewership | Swachh Bharat ad: POS = UP 40%, Bihar 35%, MP 25% |
🧠 The Golden Rule of Sec 12 — Registered vs Unregistered
- For almost every rule in Sec 12: if the recipient is GST Registered → POS follows the Recipient’s registration location.
- If the recipient is Unregistered → POS usually follows the address on the supplier’s record or the place where the service is physically performed.
- This distinction is the single most important concept in Place of Supply for Services.
