Clarification on the entitlement of input tax credit where the place of supply is determined in terms of the proviso to sub-section (8) of section 12 of the Integrated Goods and Services Tax Act, 2017

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.... Act, 2017 - reg. Ref: Circular No. 184/16/2022-GST, dated 27.12.2022, issued by Ministry of Finance, Department of Revenue, Government of India, Central Board of Indirect Taxes and Customs, New Delhi. In the reference cited, the CBIC, Department of Revenue, Ministry of Finance, Government of India, New Delhi, has issued Circular No. 184/16/2022-GST, dated 27.12.2022 on the recommendations of the GST Council. Hence, following pari materia circular is issued. Attention is invited to sub-section (8) of section 12 of Integrated Goods and Services Tax Act, 2017 (hereinafter referred to as "IGST Act") which provides for the place of supply of services by way of transportation of goods, including by mail or courier, where location of....

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.... and recipient of the said supply of services are located in India, what would be the place of supply of the said services? The place of supply of services by way of transportation of goods, including by mail or courier, where both the supplier and the recipient are located in India, is determined in terms of sub-section (8) of section 12 of the IGST Act which reads as follows: "(8) The place of supply of services by way of transportation of goods, including by mail or courier to,- (a) a registered person, shall be the location of such person; (b) a person other than a registered person, shall be the location at which such goods are handed over for their transportation: Provided that where the transportation of goods is to a place....

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....x (IGST) would be chargeable on the said supply of services. In respect of the illustration given in Sl. No. 1. above, Z would charge IGST from X in terms of sub-section (5) of section 7 of the IGST Act, for supply of services by way of transportation of goods. 3. In the case given in Sl. No. 1, whether the recipient of service of transportation of goods would be eligible to avail input tax credit in respect of the said input service of transportation of goods? Section 16 of the TNGST Act lays down the eligibility and conditions for taking input tax credit whereas, section 17 of the TNGST Act provides for apportionment of credit and blocked credits under circumstances specified therein. The said provisions of law do not restrict avail....