Place of supply is an important concept under GST Law. Place of supply is important to determine whether the supply is intra-state supply or inter-state supply. It is also important to determine whether the supply is import or export of goods or services.
GST Law has prescribed different rules for place of supply of goods and place of supply of services.
Similarly, place of supply of goods (other than supply of goods imported into India or exported from India) are different. Place of supply of goods for goods imported into India & exported out of India are specified.
Place of supply of services when the supplier of service and recipient of service both are located in India are specified separately. Place of supply of services where the location of supplier of service or the location of the recipient of service are also specified separately.
INTRA-STATE SUPPLY:
Where the location of the supplier and the place of supply (not location of the recipient of goods or services) are in the same state, such supply is termed as Intra-state supply. CGST & SGST is payable on intra-state transactions.
INTER-STATE SUPPLY:
Where the location of the supplier and the place of supply (not location of the recipient of goods or services) are in different states, such supply is termed as inter-state supply. IGST is payable on inter-state transactions.
Supplies of goods & services outside India and supplies of goods & services to or by Special Economic Zones (SEZ) are termed as Inter-state supplies.
COMPOSITE SUPPLY:
Composite Supply means a supply made by a taxable person to a recipient comprising of two or more supplies of goods or services or combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a “principal supply”.
GST is payable on the “ancillary supply” at the rate applied on the “Principal Supply”.
MIXED SUPPLY:
Mixed Supply means two or more individual supplied of goods or services, or any combination thereof, made in conjunction with each other by a taxable person for a single price where such supply does not constitute a composite supply.
GST is payable at the rate on that particular supply which attracts the highest rate of tax.