Place of supply

[ARUNKUMAR AGRAWAL]

(3)

1. ‘A’ is a registered person situated in Kerala. He has a vessel and uses it for commercial purposes for transportation of tourists.

2. A group of tourists booked his vessel for 3 days (72 hours) to go from Kochi in Kerala to Lakshadweep and return back to Kochi. Total freight for this period was demanded by ‘A’ was Rs 8,00,000 excluding tax. The tourists returned timely. Out of the period of 3days time spent by Vessel in Lakshadweep was 60 hours and rest in Kerala.

Please answer the following questions:

Find place of supply of service?

What will be total amount of tax charged.

How much of the tax will go to Lakshadweep

[GUNASEKARAN K]

Place of Supply: Kerala (Since the service recipient is unregistered person the principal place of registered person is to be considered as place of supply)

Rate of Tax: A has to collect either 5% (Without input tax credit on his input goods/services) or 12% (With input tax credit).

And not tax revenue will go to Lakshadweep

[KASTURI SETHI]

I entirely agree with Sh. GUNASEKARAN K Ji . See Section 12 (10) of IGST Act for place of supply.

AI Summary

Place of supply for passenger transport by vessel is the supplier's principal place, determining GST incidence and allocation.
Place of supply for passenger transport by a vessel chartered by unregistered persons is the supplier's principal place of business (Kerala), determining GST jurisdiction. The supplier may elect a composite rate without input tax credit or a higher rate with input tax credit, and tax revenue is attributable to the supplier's place of supply, not to the external territory visited.