TRANSPORTATION SERVICES & IT’S PLACE OF SUPPLY

1
453
TRANSPORTATION SERVICES & IT’S PLACE OF SUPPLY

TRANSPORTATION SERVICES & IT’S PLACE OF SUPPLY:

Place of supply is very important in GST.  If Place of supply falls within state then  CGST  and  SGST  would be attracted. If Place of supply falls out of state then  IGST would be attracted on such  transaction.

In this article, we will discussed the Place of supply of transportation services.

There are three types of transportation services,

  1. Transportation of Goods ( including mail or courier)
  2. Transportation of passengers
  3. Services provided on board & conveyance.

 

  1. Transportation of Goods: 
    • If a service receiver is registered – Place of supply is Location of such person.
    • If a service receiver is unregistered – Place of supply is Location where such Goods are handed over for transportation.
  2. Transportation of passenger:
    • If a service receiver is registered – Place of supply is Location of such person.
    • If a service receiver is unregistered – Place of supply is place where passenger embarks on conveyance for continuous journey.
    • Note: if Point of embarks is unknown then place of supply is different
      • If a service receiver is registered – Place of supply is Location of such person.
      • If address of recipient is available in records of supplier – Place of supply is such address of recipient.
      • If address of recipient is not available in records of supplier – Place of supply is Location of supplier.
  3. Services provided on board & conveyance:

The place of services on board or conveyance, including a vessel, an aircraft, a train or a motor vehicle , shall be the location of first schedule of point of departure of that conveyance for that journey.

 

Some Pratical examples:

  • ABC, a goods transportation company based on Mumbai, is hired by M/s. Shakti Dresses registered in Pune for transporting 2000 dresses.
    • Supply Type: Intrastate
    • Place of supply : Maharashtra( Location of registered person)
    • GST: CGST+ SGST

 

  • If in above example M/s. Shakti Dresses is registered in Bhopal.
    • Supply Type: Interstate
    • Place of supply : Madhya Pradesh( Location of registered person)
    • GST: IGST

 

  • Sandesh ( in Maharashtra) handed over the goods for transportation to the courier Agency at Nagpur
    • Supply Type: Intrastate
    • Place of supply : Maharashtra ( Location where Goods are handed over)
    • GST: CGST+ SGST

 

  • Air lines has a flight from Chennai to Mumbai. Mrs. Ritika boards at Hydrabad, Air hostage providing foods to passenger & take care of passenger.
    • Supply Type: Interstate ( for providing foods to the passenger)
    • Place of supply : Tamil Nadu (Location of the first point of departure of that plane)
    • GST: IGST

 

Before charging GST on the transaction one should know the basic provision of place of supply. If there is wrong GST charged on the transaction then one cannot take benefit of Input Tax Credit.

 

By- CA. Monika N Rathi.

 

1 COMMENT

  1. What about RCM? If the transporter in from outside state and place of supply in different state, then what to pay IGST or CGST and SGST?

LEAVE A REPLY

Please enter your comment!
Please enter your name here