Place of Supply - Telecommunication Services [Section 12(11) IGST Act]
# Place of Supply: Telecommunication Services
## Rule by Mode of Service
Mode of Telecom Service
Place of Supply
Fixed line, leased circuits, dish antenna, cable line
Location of the instrument (where line/antenna is installed)
Postpaid connection (mobile, broadband, internet)
Location of recipient on billing address
Prepaid connection / DTH (recharge coupons, vouchers, net packs)
• Sold via agent/distributor/reseller
Location of the agent/distributor
• Sold online directly
Location of recipient on record; if not recorded, location of supplier
## Leased Circuits Across Multiple States
If a leased circuit traverses more than one State/UT and a single consolidated amount is charged, apportion PoS across each State/UT based on the number of points (terminations) in each State/UT — in absence of any contract or agreement.
Worked example
### Example 1
Example — Landline at a different location than billing
ABC Ltd. (Registered in Jaipur) avails BSNL landline. The telephone is installed in their workspace at Gurgaon; billing address is Jaipur. Determine PoS.
Solution: For fixed-line telecom, PoS = location where the instrument is installed. PoS = Gurgaon (not Jaipur, even though billing is there). This is intra-State for BSNL Gurgaon → CGST + Haryana SGST. ABC Ltd. in Rajasthan cannot claim ITC of Haryana SGST.
⚠️ Common exam mistakes
Using billing address as PoS for fixed-line services — fixed line is anchored to instrument location.
Using recipient's location as PoS for prepaid sold through a distributor — it's the distributor's location.
Ignoring the apportionment rule for cross-State leased circuits.
Bare-Act text Section 12(11) · IGST Act, 2017 · click to expand
Section 12(11), IGST Act: The place of supply of telecommunication services including data transfer, broadcasting, cable and direct to home television services to any person shall,— (a) in case of services by way of fixed telecommunication line, leased circuits, internet leased circuit, cable or dish antenna, be the location where the telecommunication line, leased circuit or cable connection or dish antenna is installed for receipt of services; (b) in case of mobile connection for telecommunication and internet services provided on post-paid basis, be the location of billing address of the recipient of services on the record of the supplier of services; (c) in cases where mobile connection for telecommunication, internet service and direct to home television services are provided on pre-payment basis through a voucher or any other means,— (i) through a selling agent or a re-seller or a distributor of subscriber identity module card or re-charge voucher, be the address of the selling agent or re-seller or distributor as per the record of the supplier at the time of supply; or (ii) by any person to the final subscriber, be the location where such prepayment is received or such vouchers are sold; (d) in other cases, be the address of the recipient as per the records of the supplier of services and where such address is not available, the place of supply shall be location of the supplier of services.