Laws and sections by number or title, due dates, pages, and updates.
The Central Board of Indirect Taxes and Customs clarifies the place of supply for port cargo handling services and for services performed on unpolished diamonds temporarily imported into India. The place of supply for port cargo services follows sub-section (2) of Section 12 or sub-section (2) of Section 13 of the IGST Act based on the contract terms. For unpolished diamonds temporarily imported into India and exported without use, the place of supply follows sub-section (2) of Section 13 of the IGST Act.
What you must do
Law this touches
Who is affected
Exceptions
Ask about this circular
Circular No. 103/22/2019-GST
F. No. CBEC- 20/16/04/2018 – GST Government of India Ministry of Finance Department of Revenue Central Board of Indirect Taxes and Customs GST Policy Wing
New Delhi, Dated the $28^\text{th}$ June, 2019
To,
The Principal Chief Commissioners / Chief Commissioners / Principal Commissioners / Commissioners of Central Tax (All)
The Principal Director Generals / Director Generals (All)
Madam/Sir,
Subject: Clarification regarding determination of place of supply in certain cases – reg.
Various representations have been received from trade and industry seeking clarification in respect of determination of place of supply in following cases: -
(I) Services provided by Ports - place of supply in respect of various cargo handling services provided by ports to clients;
(II) Services rendered on goods temporarily imported in India - place of supply in case of services rendered on unpolished diamonds received from abroad, which are exported after cutting, polishing etc.
| S. No. | Issue | Clarification |
|---|---|---|
| 1 | Various services are being provided by the port authorities to its clients in relation to cargo handling. Some of such services are in respect of arrival of wagons at port, haulage of wagons inside port area up-to place of unloading, siding of wagons inside the port, unloading of wagons, movement of unloaded cargo to plot and staking hereof, movement of unloaded cargo to berth, shipment/loading on vessel etc. Doubts have been raised about determination of place of supply for such services i.e. whether the same would be determined in terms of the provisions contained in sub-section (2) of Section 12 or sub-section (2) of Section 13 of the IGST Act, as the case may be or the same shall be determined in terms of the provisions contained in sub-section (3) of Section 12 of the IGST Act. | It is hereby clarified that such services are ancillary to or related to cargo handling services and are not related to immovable property. Accordingly, the place of supply of such services will be determined as per the provisions contained in sub-section (2) of Section 12 or sub-section (2) of Section 13 of the IGST Act, as the case may be, depending upon the terms of the contract between the supplier and recipient of such services. |
| 2 | Doubts have been raised about the place of supply in case of supply of various services on unpolished diamonds such as cutting and polishing activity which have been temporarily imported into India and are not put to any use in India? | Place of supply in case of performance based services is to be determined as per the provisions contained in clause (a) of sub-section (3) of Section 13 of the IGST Act and generally the place of services is where the services are actually performed. But an exception has been carved out in case of services supplied in respect of goods which are temporarily imported into India for repairs or for any other treatment or process and are exported after such repairs or treatment or process without being put to any use in India, other than that which is required for such repairs or treatment or process. In case of cutting and polishing activity on unpolished diamonds which are temporarily imported into India are not put to any use in India, the place of supply would be determined as per the provisions contained in sub-section (2) of Section 13 of the IGST Act. |
It is requested that suitable trade notices may be issued to publicize the contents of this circular.
Difficulty, if any, in the implementation of this circular may be brought to the notice of the Board immediately. Hindi version follows.
(Upender Gupta) Principal Commissioner (GST)
