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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 ..... clarify the issue and to ensure uniformity in the implementation of the provisions of law across the field formations, the Chief Commissioner of State Tax, in exercise of the powers conferred by section 168 of the Gujarat Goods and Services Tax Act, 2017 (hereinafter referred to as "GGST Act"), hereby clarifies the issues as under: S. 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 Integrated Goods and Services Tax Act, 2017 (hereinafter referred to as "IGST Act") has been omitted vide section 162 of Finance Act, 2023 which will come into effect from 01.10.2023. After the said amendment, doubts have been raise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 1.2 Further, it is also mentioned that the place of supply in case of service of transportation of goods by mail or courier was not covered under the provisions of sub-section (9) of section 13 before the said sub-section was amended/ omitted. Therefore, on the same principles as mentioned above, the place of supply in case of service of transportation of goods by mail or courier will continue to be determined by the default rule under section 13(2) of IGST Act i.e. in cases where location of recipient of services is available, the place of su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isement company at the said location. During this 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? 2.1 It is clarified that the place of supply in the case supply of services in respect of advertising sector, in the cases referred in (i) and (ii), shall be determined as below: 2.2 Place of supply in Case (i): The hoarding/structure erected on the land should be considered as immovable structure or fixture as it has been embedded in earth. Furthe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3)(a) of IGST Act. Vendor is in fact providing advertisement services by providing visibility to an advertising company's advertisement for a specific period of time on his structure possessed/taken on rent by him at the specified location. Therefore, such services provided by the Vendor to advertising company are purely in the nature of advertisement services in respect of which Place of Supply shall be determined in terms of Section 12(2) of IGST Act. C. Place of supply in case of supply of the "co-location services" 3. Co-location is a data centre facility in which a business/company can rent space for its own servers and other computing hardware along with various other bundled services related to Hosting and information technology ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and information technology (IT) infrastructure provisioning services" (S. No. 3 of Explanatory notes of SAC-998315). Such services do not appear to be limited to the passive activity of making immovable property available to a customer as the arrangement of the supply of colocation services not only involves providing of a physical space for server/network hardware along with air conditioning, security service, fire protection system and power supply but it also involves the supply of various services by the supplier related to hosting and information technology infrastructure services like network connectivity, backup facility, firewall services, and monitoring and surveillance service for ensuring continuous operations of the servers and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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