POS DETERMINATION COMPLEXITIES

I.1 — Multi-State hotel chain consolidated bill

Facts: Hotel chain X charges consolidated Rs. 30,000 for 2 nights Delhi + 1 night Agra.

Computation / Steps:

Step 1. Per s. 12(3)(b) + Rule 4(i) IGST Rules — multi-State accommodation POS = property location.

Step 2. Apportionment by nights ratio: Delhi:Agra = 2:1.

Step 3. Delhi UT: Rs. 20,000 → CGST + DGST.

Step 4. Agra UP: Rs. 10,000 → If supplier in UP intra-UP; if elsewhere inter-State IGST.

Step 5. Separate State invoices required.

Result: Multi-State hotel — nights ratio per Rule 4(i). Separate State invoices.

I.2 — Multi-State leased circuit

Facts: Telecom provider installs leased circuit Delhi-Bangalore-Chennai; consolidated charge Rs. 10 lakh.

Computation / Steps:

Step 1. Per s. 12(11) + Rule 6 IGST Rules — multi-State leased circuit POS = point-based allocation.

Step 2. Points: Delhi 1 + Bangalore 1 + Chennai 1 = 3 points total (assuming benefit at each).

Step 3. Ratio 1:1:1.

Step 4. Delhi UT: Rs. 3.33 lakh; Karnataka: Rs. 3.33 lakh; Tamil Nadu: Rs. 3.33 lakh.

Step 5. Separate State invoices.

Result: Multi-State leased circuit — point-based allocation per Rule 6.

I.3 — Internet advertisement to Government (nationwide post 01.01.2019)

Facts: Government issues release order to digital ad agency Rs. 20 lakh for nationwide internet advertisement campaign.

Computation / Steps:

Step 1. Per s. 12(14) + Rule 3(h) IGST Rules — internet advertisement to Government.

Step 2. Post 01.01.2019 amendment — deemed provided all over India.

Step 3. Apportionment by TRAI internet subscriber figures by State (with population ratio for multi-State service areas).

Step 4. Compute State-wise ratio; apply to Rs. 20 lakh.

Step 5. Separate State invoices.

Result: Nationwide internet advertisement — TRAI-data-based State-wise allocation.

I.4 — Cross-border training services to multi-State performance

Facts: UK training provider conducts training Rs. 10 lakh in Mumbai + Delhi for non-registered Indian recipients.

Computation / Steps:

Step 1. Per s. 13(3)(b) + Rule 7(iii) IGST Rules — services to individuals requiring physical presence; cross-border; multi-State performance.

Step 2. GAAP-based allocation per Rule 7(iii).

Step 3. Assume GAAP ratio Mumbai:Delhi = 60:40.

Step 4. Mumbai portion Rs. 6 lakh; Delhi portion Rs. 4 lakh.

Step 5. POS Mumbai + Delhi.

Step 6. RCM on Indian recipients per s. 5(3) IGST.

Result: Cross-border training multi-State — GAAP allocation per Rule 7. RCM on Indian recipients.

I.5 — Bill-to-ship-to with three different States

Facts: Mumbai supplier A delivers goods to Pune warehouse C on instruction of Delhi bill-to party B.

Computation / Steps:

Step 1. Per s. 10(1)(b) IGST + Circular 184/2022.

Step 2. A-to-B leg: POS = principal place of business of B = Delhi.

Step 3. A (Mumbai) ≠ POS (Delhi) — inter-State IGST.

Step 4. B-to-C leg: separate supply per Circular 184/2022. POS = Pune (destination).

Step 5. B (Delhi) ≠ POS (Pune) — inter-State IGST.

Step 6. Both legs inter-State IGST.

Result: Bill-to-ship-to with three States — two inter-State IGST supplies. Each leg separately invoiced.