Section 13(3): Goods Made Available and Physical Presence

Section 13 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.

Two clauses that put the place of supply where the work is done — and two provisos that pull it back out again in defined situations.

Section 13(3): the place of supply of the following shall be the location where the services are actually performed — (a) services supplied in respect of goods which are required to be made physically available by the recipient to the supplier, or to a person acting on the supplier's behalf, in order to provide the services; (b) services supplied to an individual, represented either as the recipient or a person acting on his behalf, which require the physical presence of the recipient or that person with the supplier. First proviso to (a): where such services are provided from a remote location by way of electronic means, the place of supply is where the goods are situated at the time of supply. Second proviso to (a): the clause does not apply to services supplied in respect of goods temporarily imported into India for repairs or for any other treatment or process and exported after such repairs or treatment or process without being put to any use in India, other than that required for the repairs, treatment or process.

Clause (a): goods made physically available

The condition is precise: the goods must be required to be made physically available by the recipient to the supplier — or to a person acting on the supplier's behalf — in order to provide the services.

So two things must be true: the recipient makes the goods available, and doing so is necessary to provide the service.

Where it applies:

• repairs and maintenance of equipment sent to the supplier;
• testing, inspection and certification of goods;
• calibration;
• treatment or processing of goods sent by the customer;
• storage and warehousing where the goods are handed over.

The place of supply is where the service is performed — so where an Indian supplier repairs goods sent by a foreign customer, the place of supply is India, and the supply is not an export, notwithstanding the foreign recipient.

That is the point of the sub-section: performance-based services on goods are taxed where performed, regardless of who pays.

The first proviso: remote electronic delivery

"Provided that when such services are provided from a remote location by way of electronic means, the place of supply shall be the location where goods are situated at the time of supply of services."

The situation it addresses: the goods are not sent to the supplier; the supplier accesses or works on them remotely, electronically.

Examples: remote diagnostics on machinery; software maintenance performed on a customer's equipment over a network; remote monitoring and calibration of installed instruments.

The result: the place of supply is where the goods are, not where the supplier sits.

So an Indian supplier performing remote diagnostics on equipment located abroad has a place of supply outside India — and the supply can qualify as an export of services, subject to the other s.2(6) conditions. Conversely, a foreign supplier performing remote diagnostics on equipment in India has a place of supply in India, making it an import of services taxable under reverse charge.

The proviso therefore does real work for the services sector, because it separates remote electronic performance from physical performance and gives each a different answer.

The second proviso: temporary imports for repairs or treatment

"Provided further that nothing contained in this clause shall apply in the case of services supplied in respect of goods which are temporarily imported into India for repairs or for any other treatment or process and are exported after such repairs or treatment or process without being put to any use in India, other than that which is required for such repairs or treatment or process."

This proviso was substituted by the IGST (Amendment) Act, 2018, notified through Notification No. 1/2019-IT dated 29.01.2019, w.e.f. 01.02.2019. The earlier version covered only "repairs"; the substituted version covers "repairs or for any other treatment or process".

The widening matters. Before the substitution, only repairs qualified. After it, any treatment or process on temporarily imported goods is covered — which brings in testing, processing, finishing, assembly work and job-work-style operations on goods sent to India and sent back.

The four conditions:

1. the goods are temporarily imported into India;
2. for repairs or any other treatment or process;
3. exported after the repairs, treatment or process;
4. without being put to any use in India, other than what the repairs, treatment or process require.

The effect: clause (a) does not apply, so the place of supply falls to the default in s.13(2) — the recipient's location, which is outside India. The supply can then be an export of services, subject to the s.2(6) conditions.

Which is what makes India viable as a repair and treatment hub. Without the proviso, every such job would be taxed in India as performed here, and the foreign customer would bear an unrecoverable Indian tax.

The documentation the proviso requires: evidence of temporary import, of the repairs, treatment or process carried out, of export after it, and that the goods were not put to any other use in India. The customs documentation for the temporary import and re-export is the core of it, and it should be retained with the invoice. Export of services →

Clause (b): services requiring physical presence

"Services supplied to an individual, represented either as the recipient of services or a person acting on behalf of the recipient, which require the physical presence of the recipient or the person acting on his behalf, with the supplier for the supply of services."

Three elements: the service is supplied to an individual (or a person acting on his behalf); it requires physical presence; and that presence is with the supplier.

Where it applies: medical treatment, cosmetic procedures, personal grooming, fitness and wellness services, and comparable services delivered to a person present.

The place of supply is where performed — so treatment provided in India to a foreign patient has a place of supply in India.

Which is why medical value travel is a place-of-supply question. The supply is performed here and taxed here on this analysis, whatever the patient's nationality or residence — though many health care services are separately exempt, which is where the practical answer usually lies rather than in the place-of-supply rule. Absolute vs conditional exemption →

Sections 13(6) and 13(7): more than one location

Section 13(6): where any service referred to in sub-section (3), (4) or (5) is supplied at more than one location, including a location in the taxable territory, its place of supply shall be the location in the taxable territory.

A single-location rule that resolves in favour of India. Where performance touches India at all, along with locations abroad, the place of supply is India.

Section 13(7): where those services are supplied in more than one State or Union territory, the place of supply is each of them, with the value in proportion to the value separately collected or determined under the contract, or on such other basis as may be prescribed.

So the two operate in sequence: s.13(6) decides that India is the place of supply; s.13(7) then splits it across the Indian States involved — using the same contract-led apportionment as s.12(3), 12(7), 12(11) and 12(14). Section 12(3) →

Key takeaways

• Clause (a) applies where goods must be made physically available to the supplier in order to provide the service — place of supply is where performed.
• The first proviso sends remote electronic services to where the goods are situated.
• The second proviso, widened in 2019 from "repairs" to "repairs or any other treatment or process", takes temporary imports out of clause (a) entirely.
• That allows such work to be an export of services under the s.13(2) default, subject to s.2(6).
• Clause (b) covers services requiring the physical presence of an individual — performed where delivered.
• Section 13(6) resolves multi-location performance in favour of India; s.13(7) then apportions across States.

Read next

• Section 13(2): The Default Cross-Border Rule
• Export of Services: The Five Conditions in Section 2(6)
• Section 13(4) and 13(5): Immovable Property and Events Abroad
• Section 12(3): Immovable Property and the Proportionate Rule

Disclaimer: Positions stated as on 5 September 2026, based on the IGST Act as amended to 31 March 2026 (ICAI Bare Law, 12th edition).