Circular No. 103/22/2019-GST [C10-3H2]

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.

2. The provisions relating to determination of place of supply as contained in the Integrated Goods & Services Tax Act, 2017 (hereinafter referred to as “the IGST Act”) have been examined. In order to ensure uniformity in the implementation of the provisions of the law, the Board, in exercise of its powers conferred by sub-section (1) of section 168 of the Central Goods & Services Tax Act, 2017 (hereinafter referred to as “the CGST Act”) clarifies the same as below: -

Circular No. 103/22/2019-GST

S. Issue Clarification No.

1 Various services are being provided by the It is hereby clarified that such services port authorities to its clients in relation to are ancillary to or related to cargo cargo handling. Some of such services are handling services and are not related to in respect of arrival of wagons at port, immovable property. Accordingly, the haulage of wagons inside port area up-to place of supply of such services will be place of unloading, siding of wagons inside determined as per the provisions the port, unloading of wagons, movement contained in sub-section (2) of Section of unloaded cargo to plot and staking 12 or sub-section (2) of Section 13 of hereof, movement of unloaded cargo to the IGST Act, as the case may be, berth, shipment/loading on vessel etc. depending upon the terms of the Doubts have been raised about contract between the supplier and determination of place of supply for such recipient of such services. 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.

2 Doubts have been raised about the place of Place of supply in case of performance supply in case of supply of various services based services is to be determined as on unpolished diamonds such as cutting per the provisions contained in clause and polishing activity which have been (a) of sub-section (3) of Section 13 of temporarily imported into India and are not the IGST Act and generally the place of put to any use in India? 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

Circular No. 103/22/2019-GST

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. It is requested that suitable trade notices may be issued to publicize the contents of this circular.

4. Difficulty, if any, in the implementation of this circular may be brought to the notice of the Board immediately. Hindi version follows.