Recipient details available on records of supplier
Location of the recipient (as per supplier's records)
Recipient's location not available on records
Location of the supplier
Applies to banking, financial services including stock broking.
### Section 12(13) – Insurance Services
Recipient
Place of Supply
Registered person
Location of such registered person
Unregistered person
Location of the recipient as per records of the supplier
### Key Distinction
Banking/Financial: Recipient's location available -> recipient; else -> supplier.
Insurance: Always recipient-based, but registration status decides the source (own location vs records).
Worked example
### Example 1
Example 1: A bank in Mumbai provides loan services to a customer whose KYC address is Pune.
Place of Supply = Pune (Maharashtra)
### Example 2
Example 2: A casual walk-in customer (no records) gets foreign exchange from a bank branch in Delhi.
Place of Supply = Delhi (supplier's location since recipient not on record)
### Example 3
Example 3: A stock broker in Kolkata executes trades for a client whose address on record is Hyderabad.
Place of Supply = Hyderabad (Telangana)
### Example 4
Example 4 (Insurance): A registered company in Chennai buys group insurance for its employees.
Recipient registered in Chennai
Place of Supply = Chennai (TN)
### Example 5
Example 5 (Insurance): An unregistered individual buys a life insurance policy; address on supplier's record is Jaipur.
Place of Supply = Jaipur (Rajasthan)
⚠️ Common exam mistakes
Confusing the two sections – banking has supplier fallback; insurance has separate rules for registered vs unregistered.
Forgetting that stock broking is covered under banking/financial services.
Applying supplier location for insurance unregistered recipients – it's recipient's address on record.
Bare-Act text Sections 12(12) & 12(13) · IGST Act, 2017 · click to expand
Section 12(12) of IGST Act, 2017 – The place of supply of banking and other financial services, including stock broking services to any person shall be the location of the recipient of services on the records of the supplier of services. Provided that if the location of recipient of services is not on the records of the supplier, the place of supply shall be the location of the supplier of services. Section 12(13) – The place of supply of insurance services shall, – (a) to a registered person, be the location of such person; (b) to a person other than a registered person, be the location of the recipient of services on the records of the supplier.