Last updated on June 22, 2017
Experts from all corners of the industry understand the significance of keeping a tab on the latest happenings in GST and the latest and updated GST bill news enables them to achieve their objective. Let us now lay some light on how to accurately determine the place of supply, especially in case of certain set of services.
Let us now discuss about certain specific services in detail and the places where those particular services can be delivered.
- Restaurant and catering services
These services can be rendered at a place where the supply in available. If a catering vendor is operating in Mumbai and providing catering services to an automobile company for their sales in Mumbai. Since the location of supplier and the location where the service will be rendered are the same, it can certainly be called as intrastate supply and some of the taxes that will be applicable in this context are SGST and CGST.
- Personal grooming and fitness services
Some of the services in the umbrella include personal grooming, beauty treatment, and fitness and also includes cosmetic treatment and plastic surgery. These services can be rendered at any location where the recipient and the service provider feel comfortable. A professional from Odisha can take Ayurvedic treatment from a Centre based out in Goa. The treatment will be performed in Goa. As per reputed GST in India, it will be considered as an intrastate supply and the taxes levied with be SGST and CGST.
- Services pertaining to training and performance appraisal
In such services, there might be instances where the location where the service is rendered and the place where the recipient is located are separate. To quote an example, a fashion design institute in Bangalore provides training to the employees of an apparel manufacturing firm that is based out in Kerala. Since, the training will be conducted in the premises of the design institute in Bangalore, the GST rate applicable will be IGST.
- Services rendered through admission to an artistic, cultural, education event or amusement park
This service can be rendered anywhere across the country and is generally where the location of the service provider and recipient are two separate places. An individual based out in Faridabad, Haryana, buys a ticket for a beach festival in Panjim, Goa. Since the beach festival is happening in a different state, it would come under the bandwagon of SGST and CGST.
- Services rendered by an organisation of an artistic, cultural, sporting or entertainment event
An event management enterprise based out in Delhi, provides the event management services the state of Rajasthan for a wedding reception in Rajasthan. Since, the service provider is based out in a Union territory and the wedding in to be held in Rajasthan, the taxes applicable would be CGST and UTGST.
We can comprehend from the above discussion that the service providers need to be well updated about the latest GST bill news so that they can levy the taxes as per the guidelines laid out by the GST council. The instances where the service provider and recipient of the service are the same, companies would be required to levy SGST and CGST. The places where the location of the service provider and recipient are different, they would be required to levy IGST. Apart from this, if the service provider is based out in a union territory and the recipient is based out in a state, the taxes levied will be CGST and UTGST. It must be noted that in cases where the services are rendered or the place where the event actually took place and the recipient of the service is at the same location, it will always be considered as an intrastate transaction. Thus, it is all the more important for service providers to keep track of the places where they can deliver their services and the knowledge of different types of taxes that will be levied.
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