![\"Exactlly-ERP-Software\"](\"https:\/\/www.exactlly.com\/blog\/wp-content\/uploads\/EX-002.jpg\")
<\/a><\/p>\nThere are several rules to understand how the supply of services is different from the supply of goods. The supply of goods is dependent on the movement of these goods. However, several factors such as the supply of service being intangible in nature, there being no fixed method of delivery, and the location of the supplier and the recipient being either undeterminable or not fixed, come into play when deciding the place of supply of services.<\/p>\n
We have discussed broadly two scenarios to understand the place of supply of services i.e., the supply of services rendered to a registered person and an unregistered person as follows \u2013<\/p>\n
Registered Person \u2013<\/strong><\/h3>\n\n- Service tax is applicable under the indirect tax regime in case of a taxable service being rendered to a person registered within the same state \/ outside the state.<\/li>\n
- F&M Clothing registered in Maharashtra provides design services to Lara Fashion in Madhya Pradesh. Since the provision of such a service is taxable, 15% of such service tax will be charged on this transaction.<\/li>\n
- Under the GST regime, the place of supply is used to determine the tax levied on the transaction. Taking the same example, the registered place of business of the recipient, i.e., Madhya Pradesh will be the place of supply.<\/li>\n<\/ul>\n
\n\n\n\n\n<\/td>\n
\nDescription<\/strong><\/h4>\n<\/td>\n\nExample<\/strong><\/h4>\n<\/td>\n<\/tr>\n\n\nSupply to a Person Registered in the same State<\/strong><\/h5>\n<\/td>\nTaxes levied are CGST and SGST owing to an intrastate transaction<\/td>\n \nF&M Clothing registered in Maharashtra provides design services to Lara Fashion in Maharashtra. The location of the supplier and place of supply of the service is both Maharashtra and thus this transaction qualifies as an intrastate supply.<\/p>\n<\/td>\n<\/tr>\n
\n\nSupply to a Person Registered in a different state<\/strong><\/h5>\n<\/td>\nTaxes levied are the IGST owing to an interstate transaction<\/td>\n \nF&M Clothing registered in Maharashtra provides design services to Lara Fashion in Tamil Nadu. The location of the supplier is Maharashtra and the place of supply of the service is Tamil Nadu and thus this transaction qualifies as an interstate supply.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
Unregistered Person \u2013<\/strong><\/h3>\n\n- Service tax is applicable under the indirect tax regime in case of a taxable service being rendered to an unregistered person.<\/li>\n
- Under the GST regime, there may be two scenarios for determining such supply rendered to an unregistered person i.e., when the record of the supplier has the recipient\u2019s address and when the record of the supplier does not have the recipient\u2019s address.<\/li>\n
- When the record of the supplier contains the address of the recipient, then the place of the supply shall be ascertained by the location of the recipient as provided in such records.<\/li>\n
- When the record of the supplier does not contain the address of the recipient, then the place of the supply will be the location of the supplier of the service itself.<\/li>\n<\/ul>\n
\n\n\n\n\n<\/td>\n
\nDescription<\/strong><\/h4>\n<\/td>\n\nExample<\/strong><\/h4>\n<\/td>\n<\/tr>\n\n\nSupply within the state<\/strong><\/h5>\n<\/td>\nTaxes levied are CGST and SGST owing to an intrastate transaction. The service is supplied to an unregistered person. The record of the supplier contains the address of such recipients.<\/td>\n \nF&M Clothing registered in Maharashtra provides design services to Lara Fashion who is an unregistered dealer. The record of the supplier, F&M Clothing, states that the address of Lara Fashion is in Maharashtra. The location of the supplier and place of supply of the service is both Maharashtra and thus this transaction qualifies as an intrastate supply.<\/p>\n<\/td>\n<\/tr>\n
\n\nSupply to a different state<\/strong><\/h5>\n<\/td>\nTaxes levied are the IGST owing to an interstate transaction. The service is supplied to an unregistered person. The record of the supplier contains the address of such recipient, in a different state.<\/td>\n \nF&M Clothing registered in Maharashtra provides design services to Lara Fashion who is an unregistered dealer. The record of the supplier, F&M Clothing, states that the address of Lara Fashion is in Tamil Nadu. The location of the supplier and place of supply of the service are in different states and thus this transaction qualifies as an interstate supply.<\/p>\n
\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
It is pertinent to note that under the GST regime, any person who is rendering or supplying services may not register himself as a composite dealer. Nonetheless, as per the decision of the GST Council on March 4, 2017, small hotels, dhabas and restaurants that have an annual aggregate turnover not exceeding INR 50 lakhs may register themselves as composite dealers and gain benefits thereto. However, this aspect has not been incorporated into the GST law yet and we await a government notification to the same effect.<\/p>\n
| \n \n<\/td>\n | \nDescription<\/strong><\/h4>\n<\/td>\nExample<\/strong><\/h4>\n<\/td>\n<\/tr>\n\n | Supply to a Person Registered in the same State<\/strong><\/h5>\n<\/td>\nF&M Clothing registered in Maharashtra provides design services to Lara Fashion in Maharashtra. The location of the supplier and place of supply of the service is both Maharashtra and thus this transaction qualifies as an intrastate supply.<\/p>\n<\/td>\n<\/tr>\n \n | Supply to a Person Registered in a different state<\/strong><\/h5>\n<\/td>\nF&M Clothing registered in Maharashtra provides design services to Lara Fashion in Tamil Nadu. The location of the supplier is Maharashtra and the place of supply of the service is Tamil Nadu and thus this transaction qualifies as an interstate supply.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Unregistered Person \u2013<\/strong><\/h3>\n
|
![\"GST](\"https:\/\/www.exactlly.com\/blog\/wp-content\/uploads\/EXG-001.gif\")
<\/a><\/p>\n