TaxTMI 
TaxTMI 
Clarification on place of supply of Online Services supplied by the suppliers of services to unregistered recipients
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....i. **** ORDER: References have been received from field formations regarding noncompliance of provisions of mandatory recording of correct place of supply on the invoices by the suppliers in respect of online services provided by them, either themselves or through electronic commerce operators, to unregistered recipients due to wrong interpretation of provisions of section 12(2)(b) of Integrated Goods and Services Tax Act, 2017 (hereinafter referred to as "IGST Act") read with rule 46 of Andhra Pradesh Goods and Services Rules, 2017 (herein after referred to as "APGST Rules").It has also been mentioned that though in such cases of taxable online supplies of services to unregistered recipients, registered suppliers are required to m....
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....and includes electronic services such as,-- i. Advertising on the internet; ii. providing cloud services; iii. provision of e-books, movie, music, software and other intangibles through telecommunication networks or internet; iv. providing data or information, retrievable or otherwise, to any person in electronic form through a computer network; v. online supplies of digital content (movies, television shows, music and the like); vi. digital data storage; and vii. online gaming, excluding the online money gaming as defined in clause (80B)of section 2 of the Andhra Pradesh Goods and Services Tax Act, 2017 (Act No.16 of 2017);" 3.2 The term 'electronic commerce 'has bee....
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.... (f) name and address of the recipient and the address of delivery, along with the name of the State and its code, if such recipient is unregistered and where the value of the taxable supply is less than fifty thousand rupees and the recipient requests that such details be recorded in the tax invoice; Provided that in cases involving supply of online money gaming or in cases that where any taxable service is supplied by or through an electronic commerce operator or by a supplier of online information and database access or retrieval services to a recipient who is unregistered, irrespective of the value of such supply, a tax invoice issued by the registered person shall contain the name of the State of the recipient and the sa....
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....red supplier must contain the recipient's State name. It has also been provided in the said proviso that such State name shall be deemed to be the address on record of the recipient. 4.4 A conjoint reading of clause (b) of sub-section (2) of Section 12 of the IGST Act, sub- section (2) of Section 31 of the APGST Act and proviso to rule 46(f) of APGST Rules leads to a conclusion that in respect of supply of services made to unregistered persons, irrespective of the value of the said supply, the supplier is required to mandatorily record the name of the State of the unregistered recipient on the tax invoice, in cases involving supply of online money gaming or supply of taxable services by or through an electronic commerce operator or s....
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....papers and e-magazines, online subscription of entertainment services (e.g. OTT platforms), online telecom services, digital services through mobile applications etc. Therefore, in respect of supply of any such online/digital services, OIDAR services and online money gaming to unregistered recipients, the suppliers are mandatorily required to record the name of the State of the recipient on the tax invoice, irrespective of the value of supply of such services, and to declare place of supply of the said services as the location of the recipient (based on the name of State of the recipient)in their details of outward supplies in FORM GSTR-1/1A. 4.5.2 For the purpose of recording the name of the State of the recipient on tax invoice i....