Place of supply

[Kaustubh Karandikar]

Persons from XYZ(Singapore) are coming to India for work and staying in a Hotel of PQR (India). PQR will be issuing invoice in the name of XYZ(Singapore).

1) Is XYZ liable to pay GST on the amount charged?

2) If yes, whether IGST or CGST + SGST?

3) Which are the relevant provisions under IGST Act, Section 12(3) or Section 13(4)?

[KASTURI SETHI]

In my view, place of supply is Section 13 (4) of IGST Act.

[Ganeshan Kalyani]

Service provider and service receiver both are in same state in case of hotel stay service. In common understanding, the service provider and service receiver has to be in the same place where immovable property I.e. hotel is situated. Hotel cannot bill to a pllace from where the person arrived. Hence, CGST + SGST would be applicable.

[HariKishan Bhonagiri]

In my view 13(4)

AI Summary

Place of supply determined by location of hotel - domestic GST (CGST and SGST) applies to foreign firm's hotel billing.
Place of supply for hotel accommodation is the location of the immovable property where the service is rendered; therefore the state of the hotel is the place of supply, making the transaction a domestic supply subject to CGST and SGST. The discussion cites Section 13(4) as the governing provision for such immovable-property related services.