Place of Supply for Transportation Services

This article explains the place of supply for transportation services, supported by numerous examples. Transportation services can be broadly categorized into transportation of goods, transportation of passengers, and services supplied on board a conveyance.

Transportation of Goods

The following table outlines the determination of the place of supply for goods transportation services:

Service	Receiver	Place of Supply
Transportation of goods (including by mail or courier)	Registered person	Location of the registered recipient
Transportation of goods (including by mail or courier)	Unregistered person	Location where goods are handed over

Examples

Example 1 – Intra-State Goods Transportation:
XYZ, a transportation company based in Karnataka, is hired by Akash Electronics (registered in Karnataka) to transport 50 TV sets.
Supply of Service: Transporting goods
Place of Supply: Karnataka (location of the registered recipient)
GST: CGST + SGST (intra-state)

Example 2 – Inter-State Goods Transportation:
XYZ, based in Karnataka, is hired by Vinay Garments (registered in Maharashtra) to transport 200 saris from Bangalore to Mumbai.
Supply of Service: Transporting goods
Place of Supply: Maharashtra (location of the registered recipient)
GST: IGST (inter-state)

Example 3 – Goods Transportation by an Unregistered Person:
Mr. Sharma in Bangalore transfers his car via rail freight to Mumbai by handing it over at the Bangalore station.
Supply of Service: Transporting goods
Place of Supply: Karnataka (location where the goods are handed over)
GST: CGST + SGST

Transportation of Passengers

The place of supply for transportation of passengers is determined by the following:

Service	Receiver	Place of Supply
Transportation of passengers	Registered person	Location of the registered recipient
Transportation of passengers	Unregistered person	Location where the passenger embarks on the journey

Examples

Example 1 – Registered Passenger:
Akash Electronics (registered in Bangalore) purchases flight tickets from Happy Air Travels Ltd.’s Delhi branch for a journey from Bangalore to Delhi.
Supply of Service: Transportation of passengers
Place of Supply: Karnataka (based on the location of the registered recipient)
GST: IGST

Example 2 – Unregistered Passenger:
Ms. Anita books a two-way flight from Bangalore to Kolkata. She departs Bangalore on August 1 and returns from Kolkata on August 7, with both tickets issued in Bangalore.
Flight 1: Place of Supply is Bangalore (passenger deemed to embark from Bangalore) with CGST + SGST applicable.
Flight 2: Place of Supply is Kolkata with IGST applicable.

Services Supplied on Board a Conveyance

For services provided on board a conveyance, the place of supply is determined by the location of the first scheduled point of departure for that journey.

Example – In-flight Services:
Vimana Air (registered in West Bengal) operates a flight from Guwahati (Assam) to Chennai, with stops at Kolkata and Bangalore. Ms. Anita boards the flight at Kolkata, heading to Bangalore.
Supply of Service: In-flight services (food service, safety, etc.)
Place of Supply: Guwahati, Assam (first scheduled departure)
GST: IGST

Conclusion

This detailed guide illustrates how to determine the place of supply for transportation services under GST—covering goods, passengers, and in-transit services on a conveyance. For further assistance or to discuss your GST compliance requirements, please feel free to reach out.