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Circular No. 103/22/2019-GST
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F. No. CBEC- 20/16/04/2018 – GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
****
New Delhi, Dated the 28
th
June, 2019
To,
The Principal Chief Commissioners / Chief Commissioners / Principal Commissioners /
Commissioners of Central Tax (All)
The Principal Director Generals / Director Generals (All)

Madam/Sir,

Subject: Clarification regarding determination of place of supply in certain cases – reg.
Various representations have been received from trade and industry seeking
clarification in respect of determination of place of supply in following cases: -
(I) Services provided by Ports - place of supply in respect of various cargo handling
services provided by ports to clients;
(II) Services rendered on goods temporarily imported in India - place of supply in case
of services rendered on unpolished diamonds received from abroad, which are exported after
cutting, polishing etc.
2. The provisions relating to determination of place of supply as contained in the
Integrated Goods & Services Tax Act, 2017 (hereinafter referred to as “the IGST Act”) have
been examined. In order to ensure uniformity in the implementation of the provisions of the
law, the Board, in exercise of its powers conferred by sub-section (1) of section 168 of the
Central Goods & Services Tax Act, 2017 (hereinafter referred to as “the CGST Act”) clarifies
the same as below: -

Circular No. 103/22/2019-GST
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S.
No.
Issue Clarification
1 Various services are being provided by the
port authorities to its clients in relation to
cargo handling. Some of such services are
in respect of arrival of wagons at port,
haulage of wagons inside port area up-to
place of unloading, siding of wagons inside
the port, unloading of wagons, movement
of unloaded cargo to plot and staking
hereof, movement of unloaded cargo to
berth, shipment/loading on vessel etc.
Doubts have been raised about
determination of place of supply for such
services i.e. whether the same would be
determined in terms of the provisions
contained in sub-section (2) of Section 12
or sub-section (2) of Section 13 of the IGST
Act, as the case may be or the same shall be
determined in terms of the provisions
contained in sub-section (3) of Section 12
of the IGST Act.
It is hereby clarified that such services
are ancillary to or related to cargo
handling services and are not related to
immovable property. Accordingly, the
place of supply of such services will be
determined as per the provisions
contained in sub-section (2) of Section
12 or sub-section (2) of Section 13 of
the IGST Act, as the case may be,
depending upon the terms of the
contract between the supplier and
recipient of such services.
2 Doubts have been raised about the place of
supply in case of supply of various services
on unpolished diamonds such as cutting
and polishing activity which have been
temporarily imported into India and are not
put to any use in India?
Place of supply in case of performance
based services is to be determined as
per the provisions contained in clause
(a) of sub-section (3) of Section 13 of
the IGST Act and generally the place of
services is where the services are
actually performed. But an exception
has been carved out in case of services
supplied in respect of goods which are
temporarily imported into India for
repairs or for any other treatment or

Circular No. 103/22/2019-GST
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process and are exported after such
repairs or treatment or process without
being put to any use in India, other than
that which is required for such repairs
or treatment or process.
In case of cutting and polishing activity
on unpolished diamonds which are
temporarily imported into India are not
put to any use in India, the place of
supply would be determined as per the
provisions contained in sub-section (2)
of Section 13 of the IGST Act.

3. It is requested that suitable trade notices may be issued to publicize the contents of this
circular.
4. Difficulty, if any, in the implementation of this circular may be brought to the notice
of the Board immediately. Hindi version follows.

(Upender Gupta)
Principal Commissioner (GST)