Central Government vide Notification No. 04/2018- Integrated Tax dated31st December, 2018 notified the following rules as Integrated Goods and Services Tax (Amendment) Rules, 2018:-
1. Rule 3 in clause (h):
The words “the service shall be deemed to have been provided all over India and” inserted after the words “in the case of advertisements over internet”to clarify that the services provided over internet is not specific to 1 or more State or Union territory and shall be deemed to be provided all over India.
2. Insertion of Rule 4:
The place of supply in case of the supply of services attributable to different States or Union territories, undersub section (3) of section 12 of the IGST Act, 2017 shall be:-
a. Where such immovable property or boat or vessel is located inmore than one State or Union territory- each of the respective States or Union territories and b. In the absence of any contract or agreement between the supplier of service and recipient of services for separately collecting or determining the value of the services in each such State or Union territory- to be determined in the following manner namely:-
i. Services provided by way of lodging accommodation by a hotel, inn, guest house, club or campsite, by whatever name called and services ancillary to such services:
1) Where such property is a single property located in two or more contiguous States or Union territories or both: the supply of services shall be treated as made in each of the respective States or Union territories, in proportion to the area of the immovable property lying in each Stateor Union territory.
2) Cases except where such property is a single property located in two or more contiguous States or Union territories or both: the supply of services shall be treated as made in each of the respective States or Union territories, in proportion to the number of nights stayedin such property.
ii. All other services in relation to immovable property including services by way of accommodation in any immovable property for organising any marriage or reception etc : the supply of services shall be treated as made in each of the respective States or Union territories, in proportion to the area of the immovable property lying in each Stateor Union territory
iii. services provided by way of lodging accommodation by a house boat or any other vessel and services ancillary to such services: the supply shall be treated as made in each of the respective States or Union territories, in proportion to the time spent by the boat or vessel in each such State or Union territory, determined on the basis of a declaration made to the effect by the service provider
3. Insertion of Rule 5:
The place of supply in case ofsupply of services attributable to different States or Union territories, under subsection (7) of section 12 of the said Act, in the case of –
a. services provided by way of organisation of a cultural, artistic, sporting, scientific, educational or entertainment event, including supply of services in relation to a conference, fairexhibition, celebration or similar events; or b. services ancillary to the organisation of any such events or assigning of sponsorship to such events,
where the services are supplied to a person other than a registered person, the event is held in India in more than one State or Union territory and a consolidated. amount is charged for supplyof such services, shall be taken as being in each of the respective States or Union territories, andin the absence of any contract or agreement between the supplier of service and recipient ofservices for separately collecting or determining the value of the services in each such State orUnion territory, as the case maybe, shall be determined by application of the generally accepted accounting principles.
4. Insertion of Rule 6: Supply under section 12(11) of the IGST Act
In the case of supply of services relating to a leased circuit, where the leased circuit is installed in more than one State or Union territory and a consolidated amount is charged for supply of such services, shall be taken as being in each of the respective States or Union territories, and in the absence of any contract or agreement between the supplier of service and recipient of services for separately collecting or determining the value of the services in each such State or Union territory, as the case maybe, shall be determined in the following manner, namely:-
a. The number of points in a circuit shall be determined in the following manner:
i. in the case of a circuit between two points or places, the starting point or place of the circuit and the end point or place of the circuit will invariably constitute two points;
ii. any intermediate point or place in the circuit will also constitute a point provided that the benefit of the leased circuit is also available at that intermediate point;
b. the supply of services shall be treated as made in each of the respective States or Union territories, in proportion to the number of points lying in the State or Union territory
Insertion of Rule 7
In the case of services supplied in respect of goods which are required to be made physically available by the recipient to the supplier, or to a person acting on behalf of the supplier, or in the case of services supplied to an individual, represented either as the recipient or a person acting on behalf of the recipient, which require the physical presence of the recipient or the person acting on his behalf, where the location of the supplier of services or the location of the recipient of services is outside India, and where such services are supplied in more than one State or Union territory,
shall be taken as being in each of the respective States or Union territories, and the proportion of value attributable to each such State and Union territory in the absence of any contract or agreement between the supplier of service and recipient of services for separately collecting or determining the value of
the services in each such State or Union territory, as the case maybe, shall be determined in the following manner, namely:-
a. in the case of services supplied on the same goods, by equally dividing the value of theservice in each of the States and Union territories where the service is performed;
b. in the case of services supplied on different goods, by taking the ratio of the invoice value of goods in each of the States and Union territories, on which service is performed, as theratio of the value of the service performed in each State or Union territory;
c. in the case of services supplied to individuals, by applying the generally acceptedaccounting principles.
6. Insertion of Rule 8
In case of supply of services directly in relation to an immovable property, including services supplied by experts and estate agents, supply of accommodation by a hotel, inn, guest house, club or campsite, by whatever name called, grant of rights to use immovable property, services for carrying out or co-ordination of construction work, including that of architects or interior decorators, where the location of the supplier of services or the location of the recipient of services is outside India, and where such services are supplied in more than one State or Union territory, in the absence of any contract or agreement between the supplier of service and recipient of services for separately collecting or determining the value of the services in each such State or Union territory, as the case maybe, shall be determined by applying the provisions of rule 4, mutatis mutandis.
7. Insertion of Rule 9
In case of supply of services by way of admission to, or organisation of a cultural, artistic, sporting, scientific, educational or entertainment event, or a celebration, conference, fair, exhibition or similar events, and of services ancillary to such admission or organisation, where the location of the supplier or the location of the recipient is outside India, and where such services are provided in more than one State or Union territory , in the absence of any contract or agreement between the supplier of service and recipient of services for separately collecting or determining the value of the services in each such State or Union territory, as the case maybe, shall be determined by applying the provisions of rule 5, mutatis mutandis”.