The Government of West Bengal on January 08, 2025, issued the Clarification on place of supply of Online Services supplied by the suppliers of services to unregistered recipients.
The following has been stated namely: -
• Mandatory Requirement for Tax Invoice: Suppliers must include the recipient's State name on the tax invoice when providing services to unregistered persons, particularly for online services (such as online money gaming, OIDAR services, and other digital services like OTT platforms, e-newspapers, telecom services, etc.).
• State Name as Address on Record: The State name mentioned on the tax invoice will be considered as the address on record for the recipient, which is crucial for determining the place of supply. This means the place of supply will be the location of the recipient (based on the recorded State) for such services.
• Broad Scope of Applicability: The clarification applies not only to online money gaming and OIDAR services but also to all online and digital services provided to unregistered recipients.
• Supplier's Responsibility: Suppliers must devise a system to collect the recipient’s State name before providing such services.
• Penalties for Non-Compliance: Suppliers who fail to include the correct State name and other mandatory details on the tax invoice may face penal action under Section 122(3)(e) of the WBGST Act.
[Notification No. 03/2025]
