Sunshine Enterprises, registered in Delhi, enters into a contract with TML Ltd., an advertising company located and registered in Noida, Uttar Pradesh, to arrange the display of an advertisement for Sunshine Enterprises,

In the given case, two supplies are involved: (i) Services provided by TML Ltd. to Sunshine Enterprises by way of arranging the display of the advertisement of its newly launched product, and (ii) Services provided by Hotel Hinduja Haveli to TML Ltd. by way of placing a hoarding in the lawn of the hotel. The place of supply in each of the above supplies is as follows: (i) As per section 12(2) of the IGST Act, 2017, the place of supply of services, except the services specified in sub-sections (3) to (14) of section 12 of the IGST Act, 2017, made to a registered person is the location of the person receiving the services. Advertisement services provided by TML Ltd. to Sunshine Enterprises is not covered in any of the above sub-sections of section 12 of the IGST Act, 2017. Therefore, the place of supply shall be determined by the default provision under section 12(2)(a) of the IGST Act, 2017, viz. the location of the recipient. Thus, the place of supply, in the given case, is the location of Sunshine Enterprises, i.e., Delhi. (ii) As per the provisions of section 12(3) of the IGST Act 2017, directly in relation to an immovable property, including services provided by architects, interior decorators, surveyors, engineers and other related experts or estate agents, any service provided by way of grant of rights to use immovable property or for carrying out or co-ordination of construction work is the location of immovable property. Therefore, the place of supply of service provided by way of grant of rights to use the hoarding/ structure for advertising in this case would be the location of immovable property where such hoarding/ structure is located. Thus, the place of supply, in the given case, is location of hotel where the hoarding is located, viz. Sardar Market- Jodhpur, Rajasthan.