Question10: A Ltd. a registered person
in Delhi has availed services of an Advocate in Mumbai. GST has to be paid on
Reverse Charge basis. Our question is with regard to place of supply, whether
IGST to be paid or CGST & SGST. Kindly elaborate both the senario (i) The
advocate came to Delhi and delivered his service and (ii) the advocate never
came to Delhi but sent his opinion from Mumbai through email.
Answer: The issue of inter sate or intra stete is to be decided on the
basis of place of supply and location of supplier
The place of supply in given case as per Section 12 (2) of CGST Act will be the
place registered person because it is not covered under subsection 3 to 13 of
section 12
Now coming to location of service provider For this we have to see section 9 (3
and 4) the same are reproduced below
(3) The Government may, on the recommendations of the Council, by notification,
specify categories of supply of goods or services or both, the tax on which
shall be paid on reverse charge basis by the recipient of such goods or services
or both and all the provisions of this Act shall apply to such recipient as if
he is the person liable for paying the tax in relation to the supply of such
goods or services or both.
4) The central tax in respect of the supply of taxable goods or services or both
by a supplier, who is not registered, to a registered person shall be paid by
such person on reverse charge basis as the recipient and all the provisions of
this Act shall apply to such recipient as if he is the person liable for paying
the tax in relation to the supply of such goods or services or both.
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The law says that all the provision relating to supply will apply to reciever as
they are applicable to supplier in other words the receiver is treated as
supplier .if the receiver is treated as supplier then the location of supplier
is Delhi in your case and place of supply is also Delhi so CGST and SGst is to
be charged we can test this in practical way also suppose Section 9(4) is still
applicable and I am taking a room in other state for stay and the service
provider is not registered in this case place of supply will be the state where
the property is located suppose it is Mahrashtra and I am registered in Delhi in
this case for me it will never possible to deposit tax (CGST and SGCT) in the
state of Mahrashtra So my place will be treated as place of supplier and will
deposit IGSt for the room rent because in that case place of supply is the place
where the Hotel is located
The wording of section 9(3) and Section 9(4) is same as highlighted .Section 9
(4) we discussed to make point more clear. (Reply Dt. 20/12/2017)