QUESTION

Mr A is registered under GST in the state of Haryana, Maharashtra and Karnataka. He is going to hold conference/event by virtual mode. Event will be organised by using virtual platform from Haryana location. Speakers, who will give presentation in the conference/event will be from India and outside India. Recipient of service will be from India and outside India. Server to host the event virtually is located in United States but the service of providing server is to be given by vendor situated in the state of Haryana.
Query:
What will be the place of supply in the following cases:
1) If recipient of service is registered under GST.
2) If recipient of service is un-registered and we have proper address of the recipient.
3) If recipient of service is un-registered but we don’t have proper address of the recipient.
4) If recipient of service is located outside India.

ANSWER

Facts of the Case: Mr A is registered under GST in the state of Haryana, Maharashtra and Karnataka. He is going to hold conference/event by virtual mode from Haryana location. Speakers, who will give presentation at the conference/event will be from India and outside India. Recipient of service will be from India and outside India. Server to host the event virtually is located in United States but the service of providing server is to be given by vendor situated in the state of Haryana.
What will be the place of supply in the following cases:
1) If recipient of service is registered under GST.
2) If recipient of service is un-registered and proper address of the recipient is available.
3) If recipient of service is un-registered but proper address of the recipient is not available.
4) If recipient of service is located outside India.

Law Applicable: SECTION 12 of IGST Act
Section 12: Place of supply of services where location of supplier and recipient is in India

(2) The place of supply of services, except the services specified in sub-sections (3) to (14),''

(a) made to a registered person shall be the location of such person;
(b) made to any person other than a registered person shall be,''
(i) the location of the recipient where the address on record exists; and
(ii) the location of the supplier of services in other cases.

(6) The place of supply of services provided by way of admission to a cultural, artistic, sporting, scientific, educational, entertainment event or amusement park or any other place and services ancillary thereto, shall be the place where the event is actually held or where the park or such other place is located.

SECTION 13 of IGST Act

Section 13: Place of supply of services where location of supplier or location of recipient is outside India.

2) The place of supply of services except the services specified in sub-sections (3) to (13) shall be the location of the recipient of services:

Provided that where the location of the recipient of services is not available in the ordinary course of business, the place of supply shall be the location of the supplier of services.

(12) The place of supply of online information and database access or retrieval services shall be the location of the recipient of services.

Interpretation: Although Section 12(6) relating to POS of Event management/organization but it is evident from the wording of the subsection 6 that the same is applicable in case where the event is to be organized physically at some places by the supplier of service. But in the given case Mr A (supplier of service) is holding a conference virtually, therefore 12(6) will not be applicable.

Further holding a conference virtually should not be confused with information and database access or retrieval services as Mr A is not providing any provision of service via internet.

Therefore POS is to be determined under residuary clause.

Conclusion : 1) If recipient of service is registered under GST: POS shall be location of recipient of service.[12(2)(a)]

2) If recipient of service is un-registered and proper address of the recipient is available: POS shall be location of recipient of service. [12(2)(b)(i)]

3) If recipient of service is un-registered but proper address of the recipient is not available:. POS shall be location of supplier of service. [12(2)(b)(ii)]

4) If recipient of service is located outside India: POS shall be location of recipient of service. If location of the recipient of services is not available in the ordinary course of business, the place of supply shall be the location of the supplier of services. [13(2)] (Reply dt. 02/07/2021)