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Microlesson · 5-min read

Place of Supply of Performance-Based Services [Section 12(4)]

## Place of Supply – Performance Based Services [Section 12(4) of IGST Act]

For certain services that are inherently 'performed' on a person, the place of supply is where the service is actually performed.

### Covered Services

  • Restaurant and catering services
  • Personal grooming
  • Fitness
  • Beauty treatment
  • Health services (including cosmetic & plastic surgery)

### Rule

ServicePlace of Supply
Any of the above servicesLocation where the services are actually performed

This rule applies regardless of whether the recipient is registered or unregistered.

### Logic

These services need the physical presence of the recipient. So performance location is the most meaningful link, not the recipient's address or supplier's location.

Worked example

### Example 1

Example 1: Mr. X (resident of Kerala) gets a haircut at a salon in Mumbai while on vacation.

  • Service: Personal grooming
  • Performed at: Mumbai
  • Place of Supply = Maharashtra (Mumbai)

### Example 2

Example 2: A registered person in Punjab eats at a restaurant in Delhi.

  • Restaurant service performed at: Delhi
  • Place of Supply = Delhi

### Example 3

Example 3: Patient from Chennai travels to a cosmetic surgery clinic in Bangalore for plastic surgery.

  • Health service performed at: Bangalore
  • Place of Supply = Karnataka (Bangalore)

⚠️ Common exam mistakes

  • Confusing this with general rule – here recipient's registration status is irrelevant.
  • Treating gym/fitness services under general rule – they fall under 12(4).
  • Not noting that cosmetic and plastic surgery are specifically included under health services.
  • Applying this rule to training services – training is covered under 12(5), not 12(4).
Bare-Act text Section 12(4) · IGST Act, 2017 · click to expand
Section 12(4) of IGST Act, 2017 – The place of supply of restaurant and catering services, personal grooming, fitness, beauty treatment, health service including cosmetic and plastic surgery shall be the location where the services are actually performed.
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