Question 4 - What is the need to have separate rules for place of supply in respect of B2B (supplies to registered persons) and B2C (supplies to unregistered persons) transactions?
Faq On GST (2nd Edition) Dated 31.3.2017 Chapter 22 Place of Supply of Goods and Service
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Place of supply rules distinguish B2B pass-through input tax credit from B2C final consumption tax allocation. Separate place-of-supply rules are necessary because B2B supplies operate as a pass-through where tax charged is recoverable by the recipient as input tax credit, making recipient location determinative, whereas B2C supplies are final consumption and the tax paid accrues to the government, requiring rules that identify where consumption occurs.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Place of supply rules distinguish B2B pass-through input tax credit from B2C final consumption tax allocation.
Separate place-of-supply rules are necessary because B2B supplies operate as a pass-through where tax charged is recoverable by the recipient as input tax credit, making recipient location determinative, whereas B2C supplies are final consumption and the tax paid accrues to the government, requiring rules that identify where consumption occurs.
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