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

AI Summary

Tourist Vessel Trip from Kochi to Lakshadweep: Tax Supply Place Set as Kerala, Options for 5% or 12% Tax. A registered individual in Kerala operates a commercial vessel for tourist transportation. A group booked the vessel for a three-day round trip from Kochi to Lakshadweep, with a total freight charge of Rs 8,00,000, excluding tax. The vessel spent 60 hours in Lakshadweep and the rest in Kerala. The place of supply is determined as Kerala since the tourists are unregistered. The operator can charge either 5% tax without input tax credit or 12% with it. No tax revenue is allocated to Lakshadweep. This conclusion aligns with Section 12(10) of the IGST Act.