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🌍🧾 Place of Supply of Services — International Edition (Section 13, IGST Act)

When is section 13 Applicable?

🟡 When either:
👉 Location of the supplier of service is outside India, OR
👉 Location of the recipient of service is outside India

📌 Not for domestic transactions — that’s Section 12’s job!

🎯 General Rule — Section 13(2)

🧾 Default Rule:
📍 Place of supply = Location of recipient
❌ Recipient unknown?
📍 POS = Location of supplier

🧪 Example:
🔹 Indian designer freelancing for a UK firm
📍POS = UK → Export of service ✅

🔹 UK consultant gives advice to Indian startup
📍POS = India → Import of service ✅

1️⃣ Services on Physical Goods (Made Available) 🔧

📜 Section 13(3)(a)
📍POS = Where service is performed

📌 Applies when:

  • Goods are temporarily sent

  • Services involve physically working on goods

🧪 Example:
USA sends machine to India for repair 🛠️
📍POS = India = Taxable in India

2️⃣ Person Has to Be Physically Present 🙋‍♂️

📜 Section 13(3)(b)
📍POS = Where service is performed

💆 Spa, training, performance, beauty — when you need to be there physically

🧪 Example:
Tourist from Germany gets ayurvedic massage in Kerala 🌿
📍POS = India = Taxable in India

3️⃣ Immovable Property Related Services 🏠

📜 Section 13(4)
📍POS = Location of the property

Includes:
🏗️ Architecture
🔑 Property rights
🏢 Hotel stays

🧪 Example:
UK firm hires Indian architect to design villa in Goa
📍POS = India = Taxable in India

4️⃣ Events, Cultural, Educational 🎫

📜 Section 13(5)
📍POS = Where the event is held

🧪 Example:
Dubai event organized by Indian firm for US client
📍POS = Dubai = Outside India ✅

5️⃣ Where Performance Happens at Multiple Locations 🌐

📜 Section 13(6)
📍POS = Each location in proportion to service

🧪 Example:
Fashion stylist offers services across Delhi and Dubai
📍POS = Split between locations

6️⃣ Banking, Intermediary, Short-Term Leasing of Assets 💳🛥️

📜 Section 13(8)
📍POS = Location of supplier (⚠️ Controversial clause)

💥 Applies to:

  • Banking & financial services 🏦

  • Intermediary services 🧑‍💼

  • Short-term leasing of transport 🚤 (<1 month)

🧪 Example:
Indian intermediary connects US buyer with UK seller
📍POS = India = Taxable in India

🔔 Even though client and service happen abroad, GST applies — highly debated in courts! ⚖️

7️⃣ Online Information & Database Services (OIDAR) 🌐

📜 Section 13(12)
📍POS = Location of recipient

🧾 OIDAR includes:

  • E-books, movies, apps

  • Online gaming

  • Cloud storage

  • DTH, internet media

👨‍💻 If recipient in India, foreign supplier must register & pay IGST

🧪 Example:
Netflix (USA) streaming to Indian users
📍POS = India → Netflix pays IGST 💸

8️⃣ Telecommunication Services 📶

📜 Section 13(11)
📍POS = Location of recipient
(If not available, then supplier’s location)

🧪 Example:
Zoom call service billed to Indian user
📍POS = India ✅

⚠️ Special Note on Export of Services 🚢

To qualify as export (Section 2(6) of IGST Act), ensure:

✅ Supplier in India
✅ Recipient outside India
✅ POS outside India
✅ Payment in convertible foreign exchange 💵 or as per RBI
✅ Supplier & recipient ≠ same establishment

💥 If all ✅ → Zero-rated supply (No GST, claim refund of ITC or IGST paid)

🔁 Import of Services

If supplier is abroad and recipient is in India: ✅ POS = India
✅ Tax = IGST paid by recipient under reverse charge mechanism (RCM) 💸

🧠 Quick Recap Table

Service Type POS 📍 Tax Impact
General Rule Location of recipient Depends
Work on goods (sent to India) Where service performed (India) IGST
Personal services (spa, etc.) Where performed IGST
Property-related services Location of property IGST/Export
Events abroad Where event is held Often Export
Intermediary/BFSI Supplier location 🧨 Taxable in India
OIDAR to Indian user Location of recipient IGST (via RCM)
Telecom / Internet Recipient location IGST
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