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

AI Summary

Manpower supply and place of supply under GST: indirect use in construction does not attract the immovable property rule.
Manpower supply used in construction of immovable property is not a service directly in relation to immovable property under section 12(3)(a) of the IGST Act. The service is a supply of workforce to the recipient, and the connection with the immovable property is only indirect. Therefore, the general place of supply rule under section 12(2) applies for services supplied to a registered person, making the place of supply the location of the recipient.