Clarification regarding determination of place of supply in certain cases - GST - States - 36/2019 (ST/Tech/2019/8526)

OFFICE OF COMMISSIONER OF STATE TAX CHHATTISGARH, ATAL NAGAR, RAIPUR Circular No. 36/2019, dated August 02, 2019. Subject : Clarification regarding determination of place of supply in certain cases Regarding The Central Board of Indirect Taxes and Customs (CBIC) has issued circular No. 103/22/2019-GST, dated 28th June, 2019 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. 2. In order to ensure uniformity in the implementation of the provisions of the law, the Commissioner, in exercise of its powers conferred by section 168 of the Chhattisgarh Goods and Services Tax Act, 2017 (hereinafter referred to as the CGGST Act ) clarifies the same as below : Sl. 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. 3. Difficulty, if any, in the implementation of this circular may be brought to the notice of this office. Commissioner, State Tax [No. ST/Tech/2019/8526]