This circular provides clarification on determination of place of supply under GST in certain specific cases to ensure uniform application of the law.

Firstly, the circular clarifies the place of supply for various services provided by port authorities in relation to cargo handling, such as haulage of wagons, unloading, movement of cargo within port area, stacking, and loading of cargo onto vessels. It is clarified that these services are ancillary to cargo handling and are not services related to immovable property. Accordingly, the place of supply for such services shall be determined under section 12(2) of the IGST Act in case both supplier and recipient are located in India, or under section 13(2) of the IGST Act where either party is located outside India, depending on the contractual terms.

Secondly, the circular addresses the place of supply for services such as cutting and polishing of unpolished diamonds that are temporarily imported into India and exported after processing without being put to any use in India. Although performance-based services are generally taxed at the place where services are actually performed, an exception applies in cases where goods are temporarily imported for repairs or treatment and re-exported. In such cases, including cutting and polishing of diamonds, the place of supply shall be determined under section 13(2) of the IGST Act, that is, based on the location of the recipient of services.

These clarifications aim to remove ambiguity and avoid disputes regarding place of supply in the specified cases.