Place of supply

[ARUNKUMAR AGRAWAL]

1. ‘A’ is a person in Uttar Pradesh and ‘B’ is another person registered in Maharashtra.

2. ‘B’ has a commercial building such as Marriage Hall in Dubai

3. Marriage of the son of ‘A’ is organized in Lucknow but he wants reception to be held in Dubai in marriage hall of ‘B’

4. ‘B’ accepts request of ‘A’ and books his marriage hall in Dubai to ‘A’ for a consideration of Rs. 10,00,000 for one day along with all ancillary services.

5. Reception by ‘A’ was organized there and Rs. 10,00,000 was paid to ‘B’

Please answer the following questions

is there any tax liability?

If there is tax liability who will pay tax and what will be amount of tax?

What is place of supply of service in this case?

[KASTURI SETHI]

As per Section 12 (3) of IGST Act, it is not export of service despite the status of GST as destination based consumption tax. In this scenario, all conditions of export are not fulfilled.. Place of supply is in India Since B is also registered with the department. B is provider of service and A is the receiver of service. B will collect GST from A and will deposit with the Govt.

[KASTURI SETHI]

In simple words, a person who, de facto, makes payment is service receiver and a person who receives payment is the service provider.

[Shilpi Jain]

In case marriage is organised, the PoS would be location of recipient as per 12(7) of the IGST Act and as per proviso to section 12(3) it will be location of recipient

In such scenario, GST liability will exist as IGST. B is the supplier who would be liable to pay the tax.

[KASTURI SETHI]

I agree with Madam Shilpi Jain.

AI Summary

Place of Supply determined as recipient location; GST payable as IGST with supplier required to collect and remit. Where conditions for export of service are not fulfilled, the place of supply is the recipient's location under the proviso to section 12(3) and section 12(7), and the supplier must charge and remit GST/IGST; the de facto payer is treated as recipient for role attribution.