Place, Time and Value of

Supply
Place/Location of Supplier
• Location of the supplier of service is essential to determine the place of supply of
service, that is, whether the supply is a inter-state supply or a Intra- state
supply.
• Where the services are made from a place of business for which registration is
obtained - location of such registered place of business.
• Where the services are made from a place other than the registered place of
business, being a fixed establishment having sufficient degree of permanence
involving human and technical resources - location of such fixed establishment.
• Where services are made from more than one establishment – location of the
establishment most directly concerned with the provision of the supply
• Services made from a place other than above, i.e., made from a place which is
neither the registered place of business nor a fixed establishment – Location of
the usual place of residence of the supplier.
 PLACE OF SUPPLY OF
GOODS OR SERVICES OR
BOTH
Section 10-13
Place of Supply of Goods
• Place of Supply of Goods other than Supply of Goods Imported into,
or Exported from India [Section 10]
• Section 10(1)(a)
• where the supply involves movement of goods,
• whether by the supplier or the recipient or by any other person,
• the place of supply of such goods shall be the location of the goods
• at the time at which the movement of goods terminates for delivery
to the recipient;
• Examples:
1. A situated in Kolkata supplies goods to B situated in Delhi. Place of
supply:-Delhi, being place where movement of goods terminates.
2. A situated in Delhi sells goods to B situated in Kolkata on ex-works
basis where point of delivery is A’s factory premises. Place of
supply: Delhi, being place where movement of goods for delivery
terminates, even though goods subsequently move to Kolkata.
3. A situated in Delhi sells goods to B situated in Kolkata on FOR(Free
On Railways i.e. freight shall be paid by buyer) basis where point of
delivery is factory premises of B. Place of supply: Kolkata, being
place where movement of goods for delivery terminates.
• Section 10(1)(b)
• where the goods are delivered by the supplier to a recipient or any other person
• on the direction of a third person, whether acting as an agent or otherwise,
• before or during movement of goods,
• either by way of transfer of documents of title to the goods or otherwise,
• it shall be deemed that the said third person has received the goods and
• the place of supply of such goods shall be the principal place of business of such person

Example:
• This is a case of ‘Bill to Ship’ transaction.
• A of Assam places an order to B of Haryana to supply spare parts and instructs him to
deliver the spare parts to C of U.P. directly to save transportation cost. Goods are
delivered to C of U.P., the recipient of goods, on the direction of the third person, A of
Assam by the supplier of goods, B of Haryana. Place of supply: Assam being principal
place of business of A who had placed the order. IGST will be payable at Haryana
• Section 10(1)(c)
• where the supply does not involve movement of goods,
• whether by the supplier or the recipient,
• the place of supply shall be the location of such goods at the time of the
delivery to the recipient.
Examples:
1. A situated in Delhi supplies goods to B of Kolkata where goods will be
retained in A’s factory for future job works. Place of supply: Delhi, being
location of goods as supply does not involve any movement of goods.
2. Bharat Limited registered in Maharashtra sold its pre-installed
transmission tower(electric tower) located at Madhya Pradesh to Hindustan
Limited registered in Delhi. Place of supply: Madhya Pradesh, being location
of goods as supply does not involve any movement of goods.
• Section10(1)(d)
• where the goods are assembled or installed at site,
• the place of supply shall be the place of such installation or assembly.
Example:
• D situated in Delhi enters in a contract with K of Kolkata for supply
and installation of machine in K’s factory. Place of supply: Kolkata,
being place of installation or assembly of goods.
The principal laid down in section 10(1)(d) can be summarized as
under:
Location of the Location of the Place of Assembly or Place of supply
supplier(Regd office of recipient(Regd office of installation at site
the supplier) the recipient
Delhi Haryana Delhi Delhi
Delhi Haryana Haryana Haryana
Delhi Haryana Uttar Pradesh Uttar Pradesh
• Section 10(1)(e)
• where the goods are supplied on board a conveyance,
• including a vessel, an aircraft, a train or a motor vehicle,
• the place of supply shall be the location at which such goods are
taken on board.
Example: Anil of Delhi enters into contract with an airline situated in
Maharashtra for sale of gift items in the flight from Delhi to Mumbai.
Place of supply: Delhi, being location where goods are taken on board.
Section 10(2)
• Where the place of supply of goods cannot be determined, the place
of supply shall be determined in such manner as may be prescribed.
• Section 10(2) provides for situations which are not specifically
covered by Section 10(1), the place of supply of goods shall be
determined in accordance with the rules made by the Central
Government.
PLACE OF SUPPLY OF GOODS IMPORTED
INTO, OR EXPORTED FROM INDIA [Section 11]
• The place of supply of goods,––
(a) imported into India shall be the location of the importer;
(b) exported from India shall be the location outside India.

Location of the importer is not specifically defined in the Act but inference can be
drawn from location of recipient of service. For example, If A from Mumbai imports
goods from Germany, Place of supply is Mumbai, being the location of the importer,
hence IGST payable.
Let’s take example for export from India-
A from Mumbai exports goods to Germany. Place of supply : Germany, being
location outside India. No GST shall be payable.
 Section 12 of the Integrated GST Act, 2017 lists place of
supply of services, where location of supplier and recipient is
in India. Type
Applicability Place of Supply of Service
General Provision Made to a registered person location of such person
Made to unregistered person - location of recipient where
address on records exist
- location of the supplier of
services in other cases

Immovable Services provided by architects, interior decorators or any location at which immovable
property, boat or service provided by way of grant of rights to use immovable property or boat or vessel is
vessel property or for carrying out or coordination of construction located or intended to be located
work

By way of lodging accommodation, including a houseboat or

vessel
Accommodation for organising marriage or matters related
thereto, official, social, cultural, religious or business function
including services provided in relation to such function at such
property; etc

Any ancillary services to the above services

If immovable property or boat or vessel is located or intended
to be located outside India
Applicability Type Place of Supply of Service

Performance based services Restaurant, catering, personal Place of supply is the place
grooming, fitness, beauty where services are actually
treatment and health services performed
including cosmetic and plastic
surgery

Organization of a cultural, Made to a registered person location of such person

artistic, sporting event etc.,
and services ancillary to Made to unregistered person the place where the event is
organization of any of the actually held
events or assigning of
sponsorship of such events Event held outside India location of the recipient
Held in more than one State Proportionate allocation
amongst states as per the
value of service received or as
per the contract or as may be
prescribed
Applicability Type Place of Supply of Service
Transportation of goods, registered person location of such person
including by mail or courier

unregistered person location at which such goods

are handed over for their
transportation

Passenger transportation registered person location of such person

service
unregistered person place where the passenger
embarks on the conveyance
for a continuous journey
Supply of services on board a location of the first scheduled
conveyance, including a point of departure of that
vessel, an aircraft, a train or a conveyance for the journey
motor vehicle,.
 PLACE OF SUPPLY OF SERVICES WHERE LOCATION
OF SUPPLIER OR LOCATION OF RECIPIENT IS
OUTSIDE INDIA [SECTION 13]
• Section 13 of the IGST Act, 2017 provides for determination of place
of supply in cases wherein the location of the supplier of services or
the recipient of services is outside India. Place of supply of a service
shall be determined as to whether a service can be termed as import
or export of service. The specific provisions relating to the place of
supply for international supply of services are as below:
Situation Place of Supply

Default Rule other than specific situations Location of the recipient of services;
mentioned below If not available, location of the
supplier of services.
Situation Place of Supply

Services supplied directly in relation to an Place where the immovable property is located or
immovable property intended to be located

Admission to, or organization of an event Place where the event is actually held
Above Services provided in more than one Proportionate basis
State/Union Territory

Services supplied by a banking company, or a Location of the supplier of services

financial institution, or a non-banking financial
company, to account holders

Transportation of goods, other than by way of mail Place of destination of such goods
or courier

Passenger transportation services Place where the passenger embarks on the

conveyance for a continuous journey

Services provided on board a conveyance First scheduled point of departure of that

conveyance for the journey
VALUE OF TAXABLE
SUPPLY
Section 15 of CGST Act, 2017
 Section 15

Basic Inclusions Exclusions Valuation Notified

Conditions Section15 (2) Section15 (3) Rules Supplies and
Section15 (1) Section15 (4) Valuation
Rules
Section15 (5)
Section 15
• Transaction value to be taken as assessable value [Section 15(1)]
• TV=AV
1. Price actually paid or payable for the said supply of goods or
services or both
2. where the supplier and the recipient of the supply are not related
and
3. the price is the sole consideration for the supply
Amounts to be added in transaction value
[Section 15(2)]
• Section 15(2) provides the following list of adjustments that could be added to Transaction
value:-
(a) Any amounts paid by the recipient that are obligation of supplier to pay
(b) Money value of goods or services provided free or at concession by recipient
(c) Royalties and license fees payable by the recipient as a condition of supply
(d) Taxes levied under any other laws (other than SGST/CGST or IGST)
(e) Expenses incurred by the supplier before supply and charged separately
(f) Subsidy realized by supplier on the supply
(g) Reimbursements claimed separately by the supplier
(h) Discounts allowed after supply has been effected except when known before supply
(Discounts allowed as a normal trade practice and reflected on the face of the invoice shall
not be included)
Exclusions from value of supply [Section
15(3)]
No discount to be added which is given––
a. before or at the time of the supply if duly recorded in the invoice
and
b. after the supply, if—
(i) established in terms of an agreement (entered into at or before the
supply and specifically linked to relevant invoices); and
(ii) input tax credit attributable to the discount has been reversed by
the recipient of the supply
Value to be determined as per valuation rules
[Section 15(4)]
• Where the value of the supply of goods or services or both cannot be determined as
per Section 15(1), the same shall be determined in such manner as may be
prescribed.
• Chapter IV of CGST Rules, 2017

Value of notified supplies to be determined in prescribed manner

[Section 15(5)]

• Notwithstanding anything contained in Section 15(1) or Section 15(4), the value of

such supplies as may be notified by the Government on the recommendations of the
Council shall be determined in such manner as may be prescribed.
Explanation — For the purposes of this
Act,––
(a) persons shall be deemed to be “related persons” if––
(i) such persons are officers or directors of one another’s businesses;
(ii) such persons are legally recognised partners in business;
(iii) such persons are employer and employee;
(iv) any person directly or indirectly owns, controls or holds twenty-five per cent or
more of the outstanding voting stock or shares of both of them;
(v) one of them directly or indirectly controls the other;
(vi) both of them are directly or indirectly controlled by a third person;
(vii) together they directly or indirectly control a third person; or
(viii) they are members of the same family;
Determination of Value (Rule 27 to 35)
Where the consideration is not wholly in money [Rule 27]
(a) open market value;
(b) if the open market value is not available:
sum total money consideration + additional consideration (not in money), if
such amount is known at the time of supply;
(c) if no (a) or (b) can be applied
Value of like kind and quality;
(d) if no (a), (b) or (c),
Money consideration + additional consideration as determined under rule 30 or
rule 31
• Explanation.-
• (a) “open market value”
Full value in money (excluding the IGST, CGST, SGST or UTGST and the
cess payable), where the supplier and the recipient of the supply are
not related and the price is the sole consideration;
• “supply of goods or services or both of like kind and quality” means
any other supply of goods or services or both
- Made under similar circumstances
- Same in respect of the characteristics, quality, quantity, functional
components, materials, and the reputation of the goods or services or
both first mentioned (closely or substantially resembles, that supply
of goods or services or both)
Illustration:
Where a new phone is supplied for twenty thousand rupees along with
the exchange of an old phone and if the price of the new phone
without exchange is twenty four thousand rupees, the open market
value of the new phone is twenty four thousand rupees.

Where a laptop is supplied for forty thousand rupees along with the
barter of a printer that is manufactured by the recipient and the value
of the printer known at the time of supply is four thousand rupees but
the open market value of the laptop is not known, the value of the
supply of the laptop is forty four thousand rupees.
Value of supply between distinct or related
persons, other than through an agent [Rule 28]
(a) be the open market value of such supply;
(b) If (a) is not available
Goods or services of like kind and quality;
(c) if value is not determinable under (a) or (b),
As per rule 30 or rule 31, in that order
Proviso
Goods intended for further supply
• Value= 90% of the price charged by recipient
• Where the goods are intended for further supply as such by the recipient, the value shall, at
the option of the supplier, be an amount equivalent to ninety percent of the price charged for
the supply of goods of like kind and quality by the recipient to his customer not being a
related person.
Value of supply of goods made or received
through an agent [Rule 29]
(a) Open market value of the goods, or
• 90% of the price charged for the supply of goods of like kind and quality by the
recipient to his customer not being a related person (At the option of the supplier)
• Illustration:
A principal supplies groundnut to his agent and the agent is supplying groundnuts of
like kind and quality in subsequent supplies at a price of 5000 rupees per quintal on
the day of the supply.
Another independent supplier is supplying groundnuts of like kind and quality to the
said agent at the price of 4550 rupees per quintal. The value of the supply made by
the principal shall be 4550 rupees per quintal or where he exercises the option, the
value shall be 90 % of 5000 rupees i.e., 4500 rupees per quintal.
(b) where the value of a supply is not determinable under clause (a), the same shall
be determined by the application of rule 30 or rule 31 in that order
Cost Method[Rule 30]
Where the value of a supply of goods or services or both is not determinable by any of the
preceding rules
- Value = 110% of the cost of production or manufacture or the cost of acquisition of such
goods or the cost of provision of such services.
• Residual method for determination of value of supply of goods

Residual method [Rule 31]

• Where the value of supply of goods or services or both cannot be determined under rules 27
to 30, the same shall be determined using reasonable means consistent with the principles
and the general provisions of section 15.
Important note: In the case of supply of services, the supplier may opt for this rule, ignoring
rule 30.
Determination of value in respect of certain
specified supplies [Rule 32]
• Purchase or sale of foreign currency, including money changing
• Booking of tickets for travel by air
• Life insurance business
• Second hand goods
• Repossession of goods from defaulting borrower
• Value of a token, or a voucher, or a coupon, or a stamp (other than postage stamp)
• Value of supply of taxable services by notified service providers between distinct
persons
• Value of supply of services in case of pure agent [Rule 33]
• Rate of exchange of currency, other than Indian rupees, for determination of value
[Rule 34]
Rule 35
• Value of supply inclusive of integrated tax, central tax, State tax, Union
territory tax.-Where the value of supply is inclusive of integrated tax
or, as the case may be, central tax, State tax, Union territory tax, the
tax amount shall be determined in the following manner, namely,-
• Tax amount = Value inclusive of taxes* tax rate in % of IGST or as the
case may be CGST, SGST, UTGST/ 100+ Sum of tax taxes (as applicable
in %)