Type of Document: Circular
Notification Date: 31 December 2024
Relevant Act(s)/Rule(s): Central Goods and Services Tax Act, 2017, Central Goods and Services Tax Rules, 2017
Circular No.: 242/36/2024-GST
The circular clarifies the place of supply for online services provided to unregistered recipients, emphasizing the following:
1. Correct Place of Supply: The place of supply must be the recipient’s location if the recipient’s State name is on record. Otherwise, it would be the supplier’s location.
2. Mandatory Invoicing Requirements: For all taxable online services (e.g., OTT subscriptions, e-magazines, OIDAR), invoices must record the recipient’s State name, irrespective of supply value, as per Rule 46(f).
3. Mechanism for Compliance: Suppliers must ensure mechanisms to collect and record recipient State details before supply.
4. Penal Provisions: Non-compliance, such as not recording mandatory details, attracts penalties under Section 122(3)(e) of the CGST Act.
Notification Link: https://taxinformation.cbic.gov.in/view-pdf/1003256/ENG/Circulars
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