CBIC vide Circular No. 103/22/2019-GST dated June 28, 2019, has clarified the determination of place of supply in certain cases. Following are various cases where the place of supply can be determined hereunder:
- Services provided by Ports: In respect of various cargo handling services provided by ports to clients are ancillary to or related to cargo handling services and are not related to immovable property. Accordingly, the place of supply of such services will be determined as per the provisions contained in sub-section (2) of Section 12 or sub-section (2) of Section 13 of the Integrated Goods and Service Tax Act, 2017 (“IGST Act”), as the case may be, depending upon the terms of the contract between the supplier and recipient of such services.
- Services rendered on goods temporarily imported in India: The place of supply in case of services rendered on unpolished diamonds received from abroad, which are exported after cutting, polishing etc, is to be determined as per the provisions contained in clause (a) of sub-section (3) of Section 13 of the IGST Act and generally the place of services is where the services are actually performed.
But an exception has been carved out in case of services supplied in respect of goods which are temporarily imported into India for repairs or for any other treatment or process and are exported after such repairs or treatment or process without being put to any use in India, other than that which is required for such repairs or treatment or process. In case of cutting and polishing activity on unpolished diamonds which are temporarily imported into India are not put to any use in India, the place of supply would be determined as per the provisions contained in sub-section (2) of Section 13 of the IGST Act.
Complete Circular can be accessed at: http://www.a2ztaxcorp.com/wp-content/uploads/2019/06/circular-cgst-103.pdf