Place of Supply – Services on Board a Conveyance [Section 12(10)]
## Place of Supply – Services on Board a Conveyance [Section 12(10)]
Services supplied on board a conveyance during a journey follow a unique rule.
### Covered Conveyances
Vessel
Aircraft
Train
Motor vehicle
### Rule
Service
Place of Supply
Services supplied on board a conveyance
Location of the first scheduled point of departure of that conveyance for the journey
### Logic
Since the conveyance moves through different States/UTs, fixing place of supply to the first scheduled departure ensures a single, consistent state for tax purposes.
Worked example
### Example 1
Example 1: An airline serves meals to passengers on a flight scheduled Delhi -> Mumbai -> Bangalore. First departure point = Delhi.
Place of Supply for on-board meal supply = Delhi (entire journey)
### Example 2
Example 2: Snacks sold on Rajdhani Express going New Delhi -> Kolkata. First scheduled departure = New Delhi.
Place of Supply = Delhi (irrespective of where actually consumed)
### Example 3
Example 3: A cruise sailing Mumbai -> Goa -> Cochin sells beauty services on board. First departure = Mumbai.
Place of Supply = Maharashtra (Mumbai)
⚠️ Common exam mistakes
Using location of supplier or recipient instead of first departure point.
Determining place of supply for each leg separately – incorrect; it's based on the first scheduled point only.
Forgetting that 'first scheduled point' means the start of that journey, not the current leg.
Bare-Act text Section 12(10) · IGST Act, 2017 · click to expand
Section 12(10) of IGST Act, 2017 – The place of supply of services on board a conveyance, including a vessel, an aircraft, a train or a motor vehicle, shall be the location of the first scheduled point of departure of that conveyance for the journey.