Sec.12(3)(a) - Place of supply

[Nikhil Kamble]

Vendor registered in Maharashtra has engaged a man power supplier registered in Karnataka for further supply of manpower services which are ultimately used in construction of immovable property.

Vendor registered in Maharashtra is of view that supply should be interstate but manpower supplier is of view that supply should be intrastate.

Does manpower service will fall under section 12(3) (a) of IGST Act

[KASTURI SETHI]

Q. Does manpower service will fall under section 12(3) (a) of IGST Act ?

Ans. No. It is inter-state supply. Covered under Section 12 (2) (a) of IGST Act. IGST is applicable.

AI Summary

Place of supply for manpower services under GST is questioned where the supply supports construction of immovable property. Place of supply for manpower services under the GST framework was questioned where a Maharashtra vendor engaged a Karnataka-registered manpower supplier for further supply of manpower ultimately used in construction of immovable property. The issue is whether such services fall within section 12(3)(a) of the IGST Act and whether the supply is to be treated as inter-State or intra-State. The discussion concerns the correct place of supply characterisation for services connected with immovable property for GST purposes.