Question
1)What would be the place of
supply in case of transportation of college students on a hire bus on a monthly
basis under a contract from delhi to haryana and same day return journey from
haryana to delhi if recipient is unregistered
2)Whether two separate invoice are required to be issued one for delhi to
haryana and another for haryana to delhi on a monthly basis from supplier side
if place of supply is different ?
Answer
The Place of supply should be decided as per
section 12 of IGST Act. Subsection (9) specifically covers service of
transportation of passenger. As per section 12(9) the place of supply is the
place where the passenger embarks. Further explanation to section 12(9) says
that the return journey should be treated as separate journey even if the right
to passage for onward and return journey is issued at the same time.
Accordingly, the service is provided for transportation from Delhi to Haryana as
well as from Haryana to Delhi.
In case of service, according to section 31(2) of CGST Act the invoice can be
raised within 30 days from the date of providing of service.
Therefore monthly invoice can be raised but it will not effect the Place of
supply. The Place of supply will remain same whether the service is provided
continuously for 30 days or for 1 or 2 days.
Thus your decision to issue two invoices, one for Delhi to Haryana and second
for Haryana to Delhi is correct. (Reply dt.20/07/2018)