POS - Services in relation to telecommunication services (within India) [Section 12(11) of IGST Act ] - GST Ready Reckoner - GST

Determination of place of supply of services in relation to telecommunication services Services in relation to telecommunication services. [ Section 12(11) of CGST Act 2017] S. No. Nature of Supply of services Place of Supply Recipient 1. Telecommunication services including data transfer, broadcasting, cable and direct to home television services to any person shall, A N Y P E R S O N (a) In case of services by way of fixed telecommunication line, leased circuits, internet leased circuit, cable or dish antenna, be the location where the telecommunication line, leased circuit or cable connection or dish antenna. The location where the telecommunication line, leased circuit or cable connection or dish antenna is installed for receipt of services. Explanation : where the leased circuit is installed in more than one State or Union territory in the absence of contract/ agreement (Rule 6 of IGST 2017) by Notification No. 04/2018 Integrated Tax w.e.f. January 01, 2019 In case of supply of services relating to a leased circuit where the leased circuit is installed in more than one State or Union territory and where the location of supplier and the recipient is in India. A consolidated amount is charged for supply of such services , shall be taken as being in each of the respective States or Union territories. In the absence of any contract or agreement between the supplier of service and recipient of services for separately collecting or determining the value of the services in each such State or Union territory, as per rule 6 of IGST Rules 2017 determine as manner prescribed:- Nature of supply a) The number of points in a circuit shall be determined in the following manner: - In the case of a circuit between two points or places, the starting point or place of the circuit and the end point or place of the circuit will invariably constitute two points. - any intermediate point or place in the circuit will also constitute a point provided that the benefit of the leased circuit is also available at that intermediate point; b) the supply of services shall be treated as made in each of the respective States or Union territories, in proportion to the number of points lying in the State or Union territory. (b) In case of mobile connection for telecommunication and internet services provided on post-paid basis . Location of billing address of the recipient of services on the record of the supplier of services (c) Mobile connection for, telecommunication, internet service and DTH television services are provided on pre-payment basis through a voucher or any other means, through a selling agent, or a re-seller, or a distributor of SIM card, or re-charge voucher Address of the selling agent or re-seller or distributor as per the record of the supplier at the time of supply. by any person to the final subscriber. The location where such prepayment is received or such vouchers are sold. (d) In other cases, not covered in (a), (b) and (c) above. If address of the recipient on the records of the supplier of services. If address of the recipient not available in the records of the supplier of services, then location of supplier of services. 2. Pre-paid service is availed or the recharge is made through Internet banking, or other electronic mode of payment. The location of the recipient of services on the record of the supplier of services shall be the place of supply of such services. Examples:- Example 1:- Mr. Murti registered in Guwahati, has availed land-line services from BSNL. The telephone is installed in residential premises in kolkata and the billing address if office of Mr. Murti in Guwahati. In this case, the place of supply of services by way of fixed telecommunication line is the location where the telecommunication line is installed for receipt of services. Example 2:- Mr. Rammurti is resident of Ghaziabad take a post paid connection mobile connection for telecommunication from Airtel, Delhi. In this case, place of supply is l ocation of billing address of the recipient of services on the record of the supplier of services i.e. Ghaziabad . Example 3:- where the leased circuit is installed in more than one State or Union territory in the absence of contract/ agreement (Rule 6 of IGST 2017) Example 1:- A company MNC Ltd. installs a leased circuit between the Delhi and Mumbai offices of a company BNM Ltd. The starting point of this circuit is in Delhi and the end point of the circuit is in Mumbai. Hence one point of this circuit is in Delhi and another in Maharashtra. The place of supply of this service is in the Union territory of Delhi and the State of Maharashtra. The service shall be deemed to have been provided in the ratio of 1:1 in the Union territory of Delhi and the State of Maharashtra, respectively. Example 2:- A company UKO Ltd. installs a leased circuit between the Chennai, Bengaluru and Mysuru offices of a company GHJ Ltd.. The starting point of this circuit is in Chennai and the end point of the circuit is in Mysuru. The circuit also connects Bengaluru. Hence one point of this circuit is in Tamil Nadu and two points in Karnataka. The place of supply of this service is in the States of Tamil Nadu and Karnataka. The service shall be deemed to have been provided in the ratio of 1:2 in the States of Tamil Nadu and Karnataka, respectively. Example 3:- A company PQR Ltd. installs a leased circuit between the Kolkata, Patna and Guwahati offices of a company DFG Ltd.. There are 3 points in this circuit in Kolkata, Patna and Guwahati. One point each of this circuit is, therefore, in West Bengal, Bihar and Assam. The place of supply of this service is in the States of West Bengal, Bihar and Assam. The service shall be deemed to have been provided in the ratio of 1:1:1 in the States of West Bengal, Bihar and Assam, respectively.