Question2:   

A company manufacturing readymade garments has registration in Maharashtra & Gujarat. They have taken space on the walls and pillars in the mall located in Chennai for display of their advertisement. The mall charges rent for the space. This service is ‘selling of space for advertisement other than print media’ and is covered under 9983 with 18% GST. What will be the place of supply of such service? Whether the mall would be able to charge IGST when billed to Maharashtra or Gujarat registration?

Answer: 

It appears that doubt in your mind has arisen because the space used for advertisement is walls and pillars. It may be pointed out that the issue is in relation to advertisement and not with regard to immovable properrty. Place of supply of service is determined according to the provisions of Section 12 of IGST Act, 2017. Section 12(2)(a) of the said Act says that the place of supply of services in case made to a registered person shall be the location of the registered person. This According to your quarry, the manufacturing company is registered in Maharashtra and Gujarat and the supplier of service is in Chennai, as such according to the legal provisions, place of supply would be Maharashtra and Gujarat respectively though the supply is provided in Chennai. This conclusion has been drawn because the said service is not covered under any of the residual sub-sections/clauses starting from clause (3) to (14) of Section 12 of the Act.  (Reply dt.26/09/2017)