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TMI BlogClarification regarding determination of place of supply in various casesX X X X Extracts X X X X X X X X Extracts X X X X ..... and to ensure uniformity in the implementation of the provisions of law across the field formations, the Commissioner of State Tax, in exercise of its powers conferred by section 168 of the Haryana Goods and Services Tax Act, 2017 (hereinafter referred to as "HGST Act"), hereby clarifies the issues as under : Sl. No. Issue Clarification A. Place of supply in case of supply of service of transportation of goods, including through mail and courier 1. Sub-section (9) of section 13 of the Integrated Goods and Services Tax Act, 2017 (hereinafter referred to as "IGST Act") has been omitted vide section 162 of the Finance Act, 2023[1] which will come into effect from 1-10-2023. After the said amendment, doubts have been raised as to whether ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efault rule under section 13(2) of the IGST Act, i. e., in cases where location of recipient of services is available, the place of supply of such services shall be the location of recipient of services and in cases where location of recipient of services is not available in the ordinary course of business, the place of supply shall be the location of supplier of services. B. Place of supply in case of supply of services in respect of advertising sector 2. Advertising companies are often involved in procuring space on hoardings/bill boards erected and mounted on buildings/land, in different States, from various suppliers ("vendors") for providing advertisement services to its corporate clients. There may be variety of arrangements betwee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entire time of display of the advertisement, the vendor is in possession of the hoarding/structure at the said location on which advertisement is displayed and the advertising company is not occupying the space or the structure.In this case, what will be the place of supply of such services provided by the vendor to the advertising company ? per section 12(3)(a) of the IGST Act, the place of supply of services directly in relation to an immovable property, including services provided by architects, interior decorators, surveyors, engineers and other related experts or estate agents, any service provided by way of grant of rights to use immovableproperty or for carrying out or co-ordination of construction work shall be the location at whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts own servers and other computing hardware along with various other bundled services related to Hosting and information technology (IT) infrastructure. 3.1 It is clarified that the Co-location services are in the nature of "Hosting and information technology (IT) infrastructure provisioning services" (Sl. No. 3 of Explanatory notes A business/company who avails the co-location services primarily seek security and upkeep of its server/s, storage and network hardware ; operating systems, system software and may require to interact with the system through a web-based interface for the hosting of its websites or other applications and operation of the servers.In this respect, various doubts have been raised as toi. whether supply of co-locat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the supplier and the recipient is restricted to providing physical space on rent along with basic infrastructure, without components of Hosting and Information Technology (IT) Infrastructure Provisioning services and the further responsibility of upkeep, running, monitoring and surveillance, etc., of the servers and related hardware is of recipient of services only, then the said supply of services shall be considered as the supply of the service of renting of immovable property. Accordingly, the place of supply of these services shall be determined by the provisions of clause (a) of sub-section (3) of section 12 of the IGST Act which is the location where the immovable property is located. 3. Difficulty, if any, in implementation of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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