CA Final · Indirect Tax Laws

Place of Supply: formula sheet

Full chapter guide

Key formulas

Intra-State supply test: Location of supplier and place of supply in the same State/UT → intra-State → CGST + SGST/UTGST; Both locations must be in the same State or the same Union Territory.
Inter-State supply test: Location of supplier and place of supply in different States/UTs → inter-State → IGST; Section 7 of the IGST Act deems import of goods or services into India, and supply to or by an SEZ developer or unit, to be inter-State supplies. This deeming comes from Section 7, not from the place-of-supply sections.
Section map: Sec 10: goods (other than import/export) | Sec 11: goods imported or exported | Sec 12: services, both parties in India | Sec 13: services, supplier or recipient outside India; Pick the section first, then the rule inside it.
Section 10 – goods involving movement: Goods moved → place where movement ends (delivery to recipient); If goods are delivered to another person on the recipient's direction, whether the recipient acts as an agent or otherwise, the recipient is deemed to have received the goods. The place of supply is then the recipient's principal place of business.
Section 10 – goods without movement and installation cases: No movement → location of goods at delivery | Goods assembled or installed at site → place of installation; Check these before the default rule.
Section 12 – default rule for services: Registered recipient → location of recipient | Unregistered recipient → location of recipient if address is on record, else location of supplier; Specific services have their own rules. For example, services directly related to immovable property have a separate rule in Section 12(3). Restaurant and catering, personal grooming, fitness, beauty treatment and health services (including cosmetic and plastic surgery) also have a specific rule of their own in Section 12: the place of supply is the location where the services are actually performed. Do not stretch this to all services performed at a location.
Section 13 – default rule for services: Place of supply = location of recipient of services; if not available in the ordinary course, location of supplier; Specific services, for example those on goods made physically available or those needing the physical presence of an individual, have separate rules. These two rules do not apply in certain cases, such as services supplied from a remote location by electronic means, or goods temporarily imported for repairs and exported after repairs without any other use.
Services linked to immovable property: Place of supply = where the immovable property is located. Proviso: if the immovable property, boat or vessel is located outside India → location of the recipient; This rule covers services supplied directly in relation to immovable property. The covered services are listed in the Act, such as architects, interior decorators, estate agents and lodging accommodation, and that list is illustrative, so do not limit it to these. Both Section 12 and Section 13 have such a rule. Under Section 12(3), the proviso applies only where the property, boat or vessel is outside India. Then the place of supply is the location of the recipient.
Goods move (Section 10(1)(a)): Place of supply = location of the goods at the time at which the movement terminates for delivery to the recipient; Applies where the supply involves movement of goods, whether by the supplier, the recipient or any other person.
Delivery on direction of a third person (Section 10(1)(b)): Place of supply = principal place of business of the third person who gave the direction; Applies where goods are delivered by the supplier to a recipient or any other person on the direction of a third person (the bill-to party), whether before or during movement, by transfer of documents of title or otherwise. The goods are deemed received by the third person, and the place is that person's principal place of business.
No movement (Section 10(1)(c)): Place of supply = location of the goods at the time of delivery to the recipient; Applies where the supply does not involve movement of goods.
Assembly or installation at site (Section 10(1)(d)): Place of supply = place of installation or assembly; Applies where goods are assembled or installed at site.
Intra-State or inter-State test: Location of supplier and place of supply in the same State = intra-State; in different States = inter-State; Use this after fixing the place of supply.
Place of supply for goods on board a conveyance: Place of supply = location at which the goods are taken on board; Applies to a vessel, aircraft, train, motor vehicle and any similar conveyance. Section 10(1)(e) of the IGST Act.
Intra-State test: Location of supplier and place of supply in the same State/UT → CGST + SGST/UTGST; Use the loading State as the place of supply, not the State where the sale takes place.
Inter-State test: Location of supplier and place of supply in different States/UTs → IGST; IGST is levied on the inter-State supply, and the place of supply (loading State) determines the State to which the IGST revenue is apportioned.
Scope check: Goods supplied on board → this rule; services on board → rules for services; Do not apply the loading-point rule to services.
Inter-State supply test: Location of supplier ≠ Place of supply (different State/UT) → IGST; Imports, exports and supplies to or from an SEZ are also inter-State under the IGST Act.
Intra-State supply test: Location of supplier = Place of supply (same State/UT) → CGST + SGST (UTGST in a Union territory); CGST and SGST are normally levied at equal rates, each being half of the GST rate.
Movement of goods (default rule, section 10(1)(a)): Place of supply = location of goods when movement terminates for delivery to the recipient; Applies whether the supplier, the recipient or any other person moves the goods.
Delivery on third person's direction (bill-to-ship-to, section 10(1)(b)): Place of supply of the first supply = principal place of business of the third person; The third person is deemed to have received the goods. This holds whether the direction is given before or during delivery, and whether or not documents of title are transferred. The second supply, from the third person onward, follows the movement rule in section 10(1)(a).
Goods not involving movement (section 10(1)(c)): Place of supply = location of the goods at the time of delivery to the recipient; Example: goods that stay in a warehouse and ownership changes.
Assembly or installation at site (section 10(1)(d)): Place of supply = place of installation or assembly; The recipient's registered address is irrelevant here.
Goods supplied on board a conveyance (section 10(1)(e)): Place of supply = location at which the goods are taken on board; The section names a vessel, an aircraft, a train or a motor vehicle as the conveyance.
Tax computation: IGST = taxable value × GST rate; or CGST = SGST = taxable value × (GST rate ÷ 2); Check first whether the question's rate is the total GST rate or the CGST rate alone.

Quick revision

POS decides the tax type: POS in a different State from the supplier means IGST.
Section 10 applies to goods in domestic supplies. Imports and exports fall under Section 11.
Section 10(1)(a), movement: where goods move, the POS is where the movement ends for delivery to the recipient.
Section 10(1)(b), third-person direction: where goods are delivered by the supplier to a recipient or any other person on the direction of a third person, the third person is treated as having received the goods. The POS is that person's principal place of business.
Section 10(1)(c), no movement: where delivery of goods does not involve movement, the POS is the location of the goods at the time of delivery to the recipient.
Section 10(1)(d), assembly or installation: for goods assembled or installed at site, the POS is the place of installation or assembly.
Section 10(1)(e), conveyance: for goods supplied on board a conveyance (vessel, aircraft, train or motor vehicle), the POS is the location at which the goods are taken on board.
If the POS cannot be determined under sub-section (1), Section 10(2) applies, and it is determined in the manner as may be prescribed.
Inter-state means the supplier's location and the POS are in different States. Intra-state means they are in the same State.
Imports and exports are not Section 10 cases. Section 7(2) treats the supply of goods imported into India, until they cross the customs frontier, as an inter-state supply. Under Section 11(a), the POS for imported goods is the location of the importer. Under Section 11(b), the POS for goods exported out of India is the location outside India.
Always identify the supplier's location, the recipient, and who directs the delivery before choosing a rule.
In the written answer, follow the order: provision, facts, conclusion.

Common mistakes

Treating the place of supply as the same thing as the location of the supplier. Fix: Write both locations on separate lines. Decide the tax only after comparing them.
Taking the billing address as the place of supply for goods, even when goods are delivered elsewhere. Fix: For moving goods, the place where movement ends is the key. If a third person receives the goods on the buyer's direction, whether the buyer acts as an agent or otherwise, the buyer is deemed to have received them and its principal place of business is the place of supply.
Taking the delivery State as the place of supply in a bill to ship to case. Fix: When a third person (the bill-to party) directs delivery, the place of supply is that person's principal place of business, not the ship to address.
Confusing the supplier's location with the place of supply. Fix: Fix the place of supply first with Section 10. Then compare it with the supplier's location. They are separate steps.
Taking the State where the sale happens during the journey as the place of supply. Fix: For goods on board, only the loading point counts. Ignore the route and the sale location.
Using the destination of the journey as the place of supply. Fix: The general rule of where the movement terminates does not apply here. The loading State decides.
Deciding the tax by the State in the recipient's billing address. Fix: Under the default rule, look at where the movement terminates. Only in a bill-to-ship-to case does the buyer's principal place of business become the place of supply.
Treating a bill-to-ship-to transaction as one supply. Fix: Split it into two supplies. Supplier to buyer (place of supply is the buyer's principal place of business) and buyer to customer (place of supply is where the goods are delivered). Compute tax separately for each.

Exam tips

Write the section number and the rule in words in the provision part of your answer. The marks usually sit in naming the right rule.
In case-scenario MCQs, look for the one phrase that triggers a special rule. The other facts are often decoys.
Always state two things in the conclusion: the place of supply and the tax charged (IGST or CGST + SGST/UTGST).
Check the current text of Sections 12 and 13 in the latest ICAI study material and amendments before the exam. Some special rules have been changed or omitted in recent years.
In bill to ship to questions, draw three boxes: supplier, bill-to party who directs, and delivery point. The place of supply is the middle box.
Always finish with the tax type. Examiners reward the link from place of supply to IGST or CGST plus SGST/UTGST.
Quote the clause by its sub-section only if you are sure of it. Otherwise describe the rule in words and apply it.
For case-scenario MCQs, check for installation, no movement and third-person direction before picking an answer. Distractors usually use the delivery State.