place of supply in case of online courses

[Asked by Guest]

how can we determine place of supply in case of online courses? for instance a student in Telangana State taking online course from chennai based institution, the institution registered under GST in Telangana also. now the GST payble under CGST/SGST or IGST ?

[KASTURI SETHI]

As per Section 25(5) of CGST Act, both institutions at Chennai and Telangana are distinct persons. Students (trainees) are not registered persons. So as per Section 12 (5)(b) of IGST Act place of supply is Chennai. Therefore, CGST & SGST are to be paid.

SECTION 12 of IGST Act. Place of supply of services where location of supplier and recipient is in India

(5) The place of supply of services in relation to training and performance appraisal to, -

(a) a registered person, shall be the location of such person;

(b) a person other than a registered person, shall be the location where the services are actually performed.

[YAGAY and SUN]

How would OIDAR services be taxable under GST?

For any supply to be taxable under GST, the place of supply in respect of the subject supply should be in India. In case, both the supplier of OIDAR Service and the recipient of such service is in India, the place of supply would be the location of the recipient of service i.e. it would be governed by the default place of supply rules.

AI Summary

Place of supply for online training: location where services are performed determines CGST and SGST applicability.
Place of supply for online training to an unregistered person is the location where the services are actually performed, so in the example the place of supply is Chennai and the supply is subject to CGST and SGST; for OIDAR or other services where both supplier and recipient are in India the default place of supply rule uses the recipient's location to determine tax treatment.