Place of Supply

[Sanjeev Sharma]

A UK based company planning to set up a hotel/ service apartments in India. An Indian Company is providing following services to this UK Company:

Advice on feasibility study, setting up, owning and coordinating the development, operation and management of mid-scale lodging facilities including service apartment, which will be setup in India by foreign company.

Where will the place of supply for aforesaid services in accordance with section 13 of IGST Act.

[Rajagopalan Ranganathan]

Sir,

Sub-section (4) of Section 13 of IGST Act, 2017 states that "the place of supply of services supplied directly in relation to an immovable property, including services supplied in this regard by experts and estate agents, supply of accommodation by a hotel, inn, guest house, club or campsite, by whatever name called, grant of rights to use immovable property, services for carrying out or co-ordination of construction work, including that of architects or interior decorators, shall be the place where the immovable property is located or intended to be located.

Therefore the place of supply is India.

[KASTURI SETHI]

Undoubtedly perfect reply by Sh.Ranhanathan Sir. Moreover, all services linked with immovable property are also consumed will be consumed in India.

AI Summary

UK Firm's India Hotel Project: Consultancy Service Taxed in India as per IGST Act Section 13(4) on Property Location. A UK-based company plans to establish a hotel or service apartments in India, and an Indian company is providing consultancy services for this project. The query concerns the place of supply for these services under the GST framework. According to Section 13(4) of the IGST Act, 2017, the place of supply for services related to immovable property is where the property is located. Therefore, since the property is in India, the place of supply is India. This interpretation was confirmed by two respondents in the discussion.