Circular No.: 203/15/2023-GST
Date of Circular: 27th October 2023
Relevant Sections and Rules:
- IGST Act, 2017: Sections 12(2), 12(3)(a), 13(2), 13(3), 13(9) (omitted), Section 168(1) of CGST Act
- Service Accounting Code (SAC): 998315 – Hosting and IT infrastructure services
Summary of Clarifications Provided:
- Place of Supply for Transportation of Goods (including mail and courier) where either supplier or recipient is outside India:
Due to the omission of Section 13(9) of IGST Act w.e.f. 01.10.2023, the place of supply for transportation of goods (other than mail or courier) is now determined by the default rule under Section 13(2):
- If recipient’s location is known: Place of supply = Location of recipient
- If not known: Place of supply = Location of supplier
Mail and courier services were never covered under Section 13(9) and will continue to follow Section 13(2) even after the amendment.
- Place of Supply for Advertisement Services (Hoardings/Billboards):
- Case (i): Where advertising companies purchase rights to use/display on fixed hoardings/structures:
- These are considered immovable property.
- Place of supply governed by Section 12(3)(a): Location of the property (i.e., hoarding).
- Case (ii): Where vendor displays advertisements on hoardings (owned/rented) for a client, but does not transfer usage rights:
- This is treated as advertisement service, not a property-based service.
- Place of supply governed by Section 12(2): Location of recipient of service.
- Place of Supply for Co-location Services:
- When services include IT hosting/infrastructure (SAC 998315) such as:
- Security, backup, firewall, monitoring, power, connectivity, etc.
- These are not renting of immovable property, hence place of supply determined by Section 12(2): Location of recipient.
- When only physical space is provided (without IT infrastructure):
- Treated as renting of immovable property.
- Place of supply under Section 12(3)(a): Location of the property.
Source: Circular No.: 203/15/2023-GST
