The liability to pay tax arises at the time of supply and the place of supply under GST law. Furthermore, the nature of supply under GST determines the type of tax to be levied. That is, CGST + SGST is levied if the supply is an intra-state supply. Whereas, IGST is levied if the supply is an inter-state supply.
Therefore, GST lays down provisions regarding the following in order to implement the tax effectively:
- place of supply of goods
- place of supply of services
- time of supply
- value of supply
In this article, we are going to discuss the provisions related to the place of supply of services. Provided these provisions are regarding place of supply where location of supplier and the recipient of services is in India.
Section 12 of the IGST Act lays provisions regarding the place of supply of services. Therefore, following are the provisions covered under different subsections of section 12.